Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
With a market capitalization of $3.58 billion, EOS was ranked 17th on CoinMarketCap’s list, at the time of writing. The digital asset has been witnessing a strong surge in value over the past week, with EOS being traded at $5.23 as it approached its next immediate resistance at $5.34.
It should be noted, however, that EOS’s market has been seeing its dominant trend repress over the past few days.
EOS four-hour chart
The attached chart highlighted EOS’s significant movement on the price charts over the course of the last three weeks. In fact, in early February, EOS was valued at $3. However, thanks to the general market bullishness, the crypto’s price surged to $5.6.
Soon after, EOS registered a small retracement. EOS breached two levels of support and dropped under $5 before a strong hike saw the coin go past the resistance at $5. The aforementioned hike may allow EOS to rally higher and test the resistance level once again.
The surge could be a part of the ascending channel pattern that is extending across the chart. Since the price was previously seen falling, the crypto-market saw volatility escape, but with the surging price, the Bollinger Bands have diverged once again, underlining a rise in volatility.
Meanwhile, the Signal line and the 50 moving average slipped under the candlesticks as the price leveled higher. This highlighted that the number of buyers in the EOS market was growing. Such buying could push it to the overbought zone since the Relative Strength Index was approaching the upper limit at 70.
Despite the said bullishness, however, EOS’s market seemed to lack momentum to continue or maintain the uptrend. The Awesome Oscillator suggested that the market had lost momentum over the past three to four days. To carry on with the current trend, EOS may want to seek greater momentum, or else a trend reversal may be in the offing.
EOS’s market has been seeing the bullish side of the market lately. However, it still lacks the momentum to keep the trend going. As the crypto-asset goes closer to the overbought zone, selling pressure could emerge and trigger a sell-off, given the growth the asset has seen over the past week.