Azeez Mustapha is a specialist in Computer Studies (including DTP), Forex and Crypto trading professional. Being expert technical and currency analyst, as well as experienced fund manager and author of several books, Azeez places strong focus on crypto market studies conducting comprehensive price analyses and sharing forecasts of presumptive market trends.
Last week, the EOSUSD was bearish, there is currently some form of consolidation in the market, which denotes a “pause” before the market resumes its movement.
EOS is a bear market. The current bearishness has a high probability of continuation – a characteristics of a persistent trending market. Long positions would not be rational until it is clear there is a change in the outlook on the market.
EOSUSD Long-term Trend: Bearish
Resistance levels: $6, $7, $8
Support levels: $3, $2, $1
EOSUSD bearish trend extended further to the south in the daily chart, and broke the last week support level at $5. The pair is approaching another support level of $4. The current price action shows the possibility of price going further downwards, aiming at the support level of $3. The Stochastic Oscillator Period 14 is below the level 10 and still points to the downside, which indicates that the market is oversold. There may be a bullish effort along the way, but it is going to be temporary.
EOSUSD Price Medium-term Trend: Bearish
Last week, the crypto was bearish. The price broke to the downside after consolidating around the resistance level at $6, the 10-day EMA is below the 50-day EMA (far apart from each other). The price broke the market level at $5 which exposed it to the strong support level at $4. More selling pressure in the market could led to further downwards movement.
Presently, the price is retracing towards the level of $5, touching the 10-day EMA. In case EOS price goes up to the resistance level at $6 with the price action formation of bullish engulfing candle that may signal a bullish signal, which would propel the market towards the north.
There is currently some form of consolidation in the market, which denotes a “pause” before the market resumes its movement, and it would most probably be in favor of bears. Nonetheless, the more the market goes bearish, the more the chances of a strong bullish reversal.