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Analysis

What EOS investors need to know before opening a long position

EOS’s double-top setup on the daily chart paved a path for its recent bear run. A plausible reversal from its current rising wedge could pose hurdles for the bulls in the coming sessions.

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What EOS investors need to know before opening a long position
Source: Canva


Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

  • EOS reversed from its 11-month trendline resistance to fall back into its bearish track.
  • The crypto’s recent reversal entailed a solid uptick in its funding rates on Binance.

The recent bearish crossover on the 20 EMA (red) and the 50 EMA (cyan) occurred after EOS’s patterned breakdown. The resultant decline entailed a position below the Point of Control (POC, red). But the $1 support evoked buying pressure and a few green candlesticks over the last few days.


Here’s AMBCrypto’s price prediction for EOS for 2023-24


Any reversals from a host of resistances near the POC could put EOS back into its bearish track before a revival. At press time, EOS traded at $1.139.

EOS formed a reversal pattern, can the sellers reenter the market?

Source: TradingView, EOS/USDT

EOS saw a double-top breakdown that rekindled the bearish inclinations from its trendline resistance (white, dashed). This trendline resistance has suppressed the buying efforts for over 11 months.

After a solid bull run, the double-top setup laid the foundation for EOS bears to step up their edge on the chart. Also, the fall from its high liquidity zone near the POC induced the EMAs to further look south. 

The current reversal from the $1-mark could find rebounding grounds from the POC in the $1.18 zone. A U-turn from this range would position the coin for a near-term downside. 

In this case, the buyers must look for a potential retest of the $0.99 baseline before a likely revival. An immediate jump above the 50 EMA and the POC would invalidate the bearish tendencies.

The Volume Oscillator [VO] failed to propel higher peaks as it bearishly diverged with the price action. This reading reinforced the possibility of a potential reversal from the POC region. 

A decline in Development Activity but improved funding rates

Source: Santiment

An analysis of data from Santiment revealed a significant dip in its development activity after a sharp spike. Interestingly, this spike correlated with a substantial rise in its Binance funding rates over the last few weeks.

On the other hand, the price action continued to mark lower peaks. Should the price action follow, EOS could invalidate its near-term bearish inclinations. But the buyers should look for entry triggers as discussed above.

Finally, keeping a watch on the king coin’s movement could help make a profitable bet.

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With a background in financial analysis and reporting, Yash is a full-time journalist at AMBCrypto. He has a keen interest in blockchain technology, with a primary focus on technical analysis of cryptocurrencies.

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Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.