By Azeez Mustapha
Updated
2 min read
The price is seen along a horizontal path on the 10-day EMA and the 50-day EMA, confirming the consolidation. Traders should trade cautiously within the range adopting best range strategy to take a small profit.
Resistance levels: $6.8, $9.4, $11.4
Support levels: $4.1, $2.0, $0.5
EOS/USD is consolidating in its long-term outlook. The upper week was bullish but the bullish momentum gradually weakened last week as the bulls have no power to drive past the resistance level of $6.8. This brought the market to the current ranging situation. Price is seen along a horizontal path on the two exponential moving averages.
This is a clear consolidation scenario, no definite market direction. More pressure from the buyer may push the price up and break the resistance level of $6.8. Also, in case the bears increase their momentum the price may be pushed down and break the support level of $4.1. Traders should patiently wait for a breakout to the upper range or a breakdown to the lower range before taking any position in the medium-term
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. Nevertheless, there may be a downward movement towards the support level of $4.1 in case the bears increase their momentum.
The cryptocurrency is ranging in the short-term. The bulls failed to break past the resistance level of $6.8 and sets in the bear whose momentum was not strong enough to break below the support level of $4.1. EOS is trading within the resistance level of $6.8 and the support level of $4.1 price range.
A breakout from the upper range and a retest of the supply area will lead the coin back up to the upper resistance level of $9.4, while a breakdown below the lower range of $4.1and a retest of the same area will take EOS down to the support level of $2.0.
The price is seen along a horizontal path on the 10-day EMA and the 50-day EMA, confirming the consolidation. Traders should trade cautiously within the range adopting best range strategy to take a small profit.
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.
