EOS Price Key Highlights
- EOS made a strong downside break from its symmetrical triangle consolidation pattern to signal that a downtrend is underway.
- Technical indicators are also reflecting the presence of selling pressure that could take price much lower.
- EOS could fall by the same height as the triangle pattern, which spans 4.200 to 6.600.
EOS made a downside break from its symmetrical triangle consolidation to signal that a downtrend is about to happen.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside or that the selloff is more likely to resume than to reverse. The short-term moving average also lines up with the triangle top around 5.400 to add to its strength as resistance while the 200 SMA is close by.
Price could fall by the same height as the triangle pattern, which spans around 1.400 in size, taking EOS down to the 4.000 mark. Stochastic is pointing south to show that there’s still some bearish momentum left, but the oscillator is also nearing oversold levels to reflect exhaustion. Turning higher could bring buying pressure back in. RSI has already reached the oversold region and is starting to pull up, indicating a return in bullish pressure.
Cryptocurrencies saw a lot of red on news of a sudden outage in Canada’s MapleChange. As it turned out, more than 900 bitcoins were stolen from the exchange on a reported hack. The company assured that investigations are ongoing but soon took down its social media accounts and website, spreading more doubts among investors.
This revives fears that the industry might not have the necessary consumer protection features yet, possibly convincing regulators to take a step back in approving more financial instruments like ETFs or futures. In turn, this could delay a pickup in funds flowing in from institutional investors.
EOS image via Shutterstock.