EOS Price Key Highlights
- EOS has formed lower highs and higher lows to create a symmetrical triangle on its 1-hour chart.
- Price is currently testing support and might be due for a bounce back to the top.
- Technical indicators are signaling bearish exhaustion but the tighter consolidation suggests a potential breakout soon.
EOS is consolidating inside a symmetrical triangle on the short-term chart, but a breakout could happen as it approaches the peak.
Technical Indicators Signals
The moving averages are oscillating but the 100 SMA looks prime for a downward crossover to signal that the path of least resistance is to the downside. This could mean that a breakdown is more likely to occur than a bounce.
Note that the triangle pattern spans 16.5 to 19.5 so the resulting breakout could last by the same height. Similarly, a break past the top at 18.5 could lead to a rally of the same size.
RSI is heading lower to show that sellers are in control, but the oscillator also seems to be bottoming out. Turning higher could draw bulls back in and lead to a bounce to the triangle resistance. Similarly, stochastic is turning higher and showing a bit of bullish divergence to signal a return in buying momentum.
Cryptocurrencies appear to have shrugged off the dollar decline, signaling that these are moving in tandem with risk-taking. So far, geopolitical risk has dampened demand for higher-yielding assets after Trump announced his decision to take the US out of the Iran deal. Worsening tensions in the region could keep investors on edge.
EOS is prepping for the launch of Dawn 4.0, first on testing mode then for the mainnet on June 1. Also, the Livecoin exchange plans a delisting in order to avoid the complexities of handling the new token, which explains the current consolidation. The official site announced:
“Within 23 hours after the end of the final period on June 1, 2018, at 22:59:59 UTC, all EOS Tokens will become fixed (ie. frozen) and will become non-transferrable on the Ethereum blockchain.”
The post EOS Price Technical Analysis for 05/11/2018 – Stay on the Lookout for a Breakout appeared first on NewsBTC.
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