EOS price has risen significantly in November and reached resistance already in place since March.
While a short-term pullback is probable, EOS will eventually break out of this resistance zone.
EOS approaches resistance
EOS prices have risen rapidly since reaching as low as $ 2.22 on Nov. 3. The rally started on November 21 and the price has hit a high of $ 3.77. However, the price is in the process of making a long upper shadow and possibly a shooting star candle.
The key resistance zone is $ 3.90, above a level EOS has not been trading since March.
The technical indicators on the daily timeframe are still bullish, but are in overbought condition.
Moving in the future
The six-hour chart shows how the rally has turned to parabolic. While the price may follow the ascending support line, it has yet to be validated enough. The support line is currently located at $ 2.80.
The RSI has formed a bearish divergence inside the overbought zone, suggesting a possible decline.
The two-hour chart is assisting this possibility, showing more significant bearish divergence in both the RSI and the MACD.
However, it also provides an ascending support line (dashed line), currently at close to $ 3.20.
Hence, the price can drop to this level before rising towards the $ 3.90 resistance zone.
A loss of the short-term support line can take the price down to $ 2.8.
CryptoTony trader has outlined an EOS chart, indicating that the price is completing a complicated W-X-Y correction and will rise to $ 5.50.
As of March, the most likely prospect is the WXY correction structure (shown in blue below), which is generated by two ABC correction structures (orange) connected by equal wave X.
If wave W and wave Y are of the same length, then the price will hit a high of $ 5.24.
A closer look at wave A shows that the price is nearing the top of the move, which is also in line with the results from the technical indicators.
After the fifth (black) wave is complete, the price will retrace significantly before making another attempt to break out.
While a pullback depending on the high may not be reached, the $ 2.87 – $ 3.07 zone will act as support for the price.
EOS price will soon reach a peak near $ 3.90 before a pullback. The next up move can then bring the price back to $ 5 levels.