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Post-correction Rally Sets Its First Target Of $1.9; Buy EOS Now?

Published September 9, 2022

Today the EOS/USDT pair is down 3% as it retests the breached resistance of $1.58. Reclaiming this barrier suggests the end of the last correction phase, and the new cycle could surpass the high swing resistance of $1.9. Moreover, the technical chart reveals a bullish reversal pattern to bolster the same cause.

Key points from EOS analysis:

  • The $1.58 breakout bolstered the formation of the cup and handle pattern
  • A rising support trendline maintains the bullish trend
  • The intraday trading volume in the EOS is $1.5 Billion, indicating a 48% gain

EOS/USDT chartsource trading view

Following the August second-half downfall, the EOS price plunged to the 0.5 Fibonacci retracement level at the $1,369 mark. Furthermore, the coin price twice retested this support within a fortnight indicating the buyers are defending this level.

Moreover, with the $1.37 base support, the EOS chart revealed a double bottom pattern with the neckline at the $1.58 mark. On September 7th, the prices gave a massive breakout from the neckline resistance supported by a significant jump in volume.

Thus, completing this bullish reversal pattern accelerates the bullish momentum, and reclaiming the $1.58 mark opens the path to swing high resistance of $1.92. As a result, the post-retest rally may surge the EOS price 18% higher to hit the $1.9 barrier.

In addition, the bullish recovery to swing high revealed the formation of the cup and handle pattern. Thus, the price pattern shall encourage buyers to breach the $1.92 and hint at the extension of prevailing recovery.

However, if traders feel supply pressure midway, a bearish pullback is acceptable until the prices sustain above the rising trendline.

Technical indicator

MACD indicator: the fast and slow lines near a bullish crossover gives additional confirmation for a $1.58 breakout. Moreover, the diminishing red bars in the histogram chart hints at the weakness in bearish momentum.

EMAs: The 50-and-100-day EMA aligned with the $1.37 level offered confluence support for EOS traders. Moreover, the 200-day EMA is currently waving at the $1.6 mark, limiting the bullish growth.

  • Resistance levels: $1,850 and, $1.9
  • Support levels- $1.58 and $1.5

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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