EOS Risks a Further Downtrend, Drops below Previous Overpriced Level at $3.10August 2, 2020
Yesterday, buyers were able to push EOS above the $3.10 overhead resistance as the market shot up to $3.30 high. This is a positive move as the bulls were able to break the three months old resistance level.
The bulls rebounded twice before the resistance was breached. In the first attempt, the price was repelled as the market dropped to $3.0 low. The resistance was breached as buyers made the second attempt to previous highs.
Unfortunately, the recent high at $3.50 was close to the previous overhead resistance. Besides, the coin is facing resistance at the recent high. Today, the price broke the previous high but was repelled at $3.50 high. If the current downward move persists, EOS will drop to $2.80 support. However, if the support above $3.20 holds, the coin will resume the uptrend.
EOS indicator reading
As the price is above the EMAs, the coin has been making impressive moves. A break above the support line of the ascending channel will accelerate the price movement. Buyers who have been waiting on the sideline will be attracted. However, the price fails to break the support line.
Key Supply Zones: $5, $6, $7
Key Demand zones: $3, $2, $1
What is the next direction for EOS?
EOS is making positive moves but fails to sustain above the previous overpriced level. A red candle body tested the 0.382 Fibonacci retracement level. It indicates that the market will rise to level 2.618 Fibonacci extension level. The targeted price was reached but a further upward move was rejected at $3.50 high. EOS risked further downward move as price breaks below $3.10 support.
Disclaimer. This analysis and forecast are the personal opinions of the author and 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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