EOS Risks Further Selling Pressure After Rejection at $2.97

Oct 18, 2020 at 11:51 // News
Coin Idol
EOS made a bounce above the $2.48 support

Today, EOS is trading at $2.53 at the time of writing. About a week ago, the coin was trading at $2.66 high. This explains the fact that the crypto is depreciating each day as the selling pressure persists.

In the previous week, the coin made a strong bounce above the $2.48 support. The bullish momentum rallied to $3.0 high. The momentum broke the SMAs and resistance line of the ascending channel. 

Unfortunately, the bulls could not sustain the uptrend as the selling pressure resumed. The downward movement is unavoidable as the coin is in the bearish trend zone. The price is expected to make a downward move at the current low. EOS will be out of the downward correction, if the price action of October 6 is repeated and the momentum is sustained. The upside momentum is unlikely because of selling pressure.

EOS indicator reading 

The coin is in a bearish momentum as it is below the 30% range of the daily stochastic. EOS is now in the oversold region. The implication is that buyers will emerge to push prices upward. The price bars are still below the SMAs which suggests a further downward movement of the coin.

EOS - Coinidol.png

Key Supply Zones: $5, $6, $7

Key Demand zones: $3, $2, $1

What is the next direction for EOS?

From the price action of October 6, EOS resumed a fresh downward move. A retraced candle body tested the 61.8% Fibonacci retracement. This indicates that EOS will decline to 1.618 Fibonacci extension. That is another low of $2.19.

EOS - Coinidol 2 chart.png

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.

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