Following its rallies to $3.80 high, buyers could not continue with the uptrend. At the recent high, the candlesticks possess long wicks.
These long wicks indicate that there is strong selling pressure at higher price levels. In the previous uptrend, buyers were overwhelmed as the coin plunged to the support above $2.80. The support at $2.80 was the previous resistance level now a support level.
The support level holds as buyers resumed a fresh uptrend. The bulls are likely to retest the $3.60 and $3.80 resistances if the current bullish momentum is sustained. Conversely, if price breaks below the $2.80 support, the crypto will fall into the range-bound zone. Before the recent breakout, the altcoin has been range-bound between $2.40 and $2.80. In the meantime, EOS has continued to rise as the $2.80 support holds.
EOS price is above the SMAs which suggests a further upward movement of the coin. Despite the breakdown, the RSI is at level 55 which indicates that the coin is in the uptrend zone. It is also above the centerline 50. The 21-day and 50-day SMAs are pointing northward indicating the uptrend.
Key Supply Zones: $5, $6, $7
Key Demand zones: $3, $2, $1
EOS is making an upward move above the $2.80 support. On November 24 uptrend; the retraced candle body tested the 38.2% Fibonacci retracement level. This retracement indicates that the market will rise to level 2.618 Fibonacci extension level. That is EOS will reach a high of $6.20. Presently, EOS is trading at $3.00 at the time of writing.
Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coin Idol. Readers should do their own research before investing funds.