By
Bhushan Akolkar
April 22nd, 2024
The price has formed an “ascending triangle” pattern on the daily and 4-hour chart which suggests the probability for the price increase toward a resistance level of $6.8.
Key Highlights:
- Formation of “Ascending triangle” pattern confirmed on the daily and 4H chart;
- the price might go up this week;
- traders should take a position with discipline.
EOS/USD Long-term Trend: Bullish
Resistance levels: $6.8, $9.4, $11.4
Support levels: $4.1, $2.0, $0.5
The cryptocurrency has been trading within the range bound of resistance level of $6.8 and support level of $4.1 since August 18. Last week it formed “Ascending triangle” pattern on the daily chart within the channel when the strong bearish pressure was lost after a drop in the price towards the support level of $4.1 and the price closed higher. More pressure from the buyer pushed the price up and broke the dynamic resistance of 50- EMA. The price has kept increasing gradually on the daily charts. Last week was bullish. There is a possibility that price might go up this week in case of the price break out at the upper trend lines of the ascending triangle formed.
On the daily chart, the Stochastic Oscillator Period 14 is above the level 50, with its signal lines pointing towards north, which indicates there could be a bullish movement this week towards the resistance level of $6.8 immediately it breaks out from the ascending triangle. Nonetheless, there may be a downward movement towards the support level of $4.1 in case the bears increase their momentum.
EOS/USD Price Medium-term Trend: Bullish
EOS/USD is bullish on the medium-term outlook, due to the ascending triangle formed within the channel last week. The price has been moving upward with the formation of more bullish candles. As of this week, the price may move higher by break out at the upper trend line of the ascending triangle.
The 10-day EMA has crossed the 50-day EMA upward with the price above the 10-day EMA, confirming the uptrend. Should EOS price go up to the resistance level at $6.8 and produce a bullish pattern, then further upward movement could be anticipated. Traders are advised to be disciplined before taking a position.