The EOS price is nudging against a significant resistance barrier. If the bulls can convincingly clear this marker, the technicals point to a 45% rally.
EOS starts the week with a juicy green candle and is higher by 5.25% to $4.29, bringing the 7-day gain to 7.23%.
The latest EOS price has lifted the projects market cap to just over $4 billion, ranking EOS as the 26th-largest cryptocurrency, just above DeFi token Aave.
Last week, I looked at EOS and pointed to the low trading volume and failure to clear the important resistance that sits just above the current price.
“Bears in control until price clears $4.40“
Therefore, if the bears are in control below $4.40, it seems logical that the bulls will charge if the price advances above this important level.
Furthermore, Friday was the most active trading day for quite some time, indicating that buyers are tentatively returning. On the final trading day of last week, more EOS changed hands than during any 24-hour period since the 28th of May.
So is now a good time to buy EOS?
Technical price forecast
The daily chart shows the EOS price has failed to break above the key horizontal resistance at $4.40 on four previous attempts in the last two weeks. Although, encouragingly, the coin has held robust support between $3.00 and $3.53.
Additionally, the recent price action has formed a cup and handle pattern, suggesting an upwards extension on a successful penetration of $4.40.
However, the price is below the 50, 100, and 100-day moving averages. Furthermore, the 50 DMA at $4.82 has completed a bearish death-cross beneath the 200 DMA at $4.89.
Despite the confluent resistance between $4.40 and $4.90, the technicals are improving, and the recent performance indicates that soon the price will push through the horizontal $4.40 threshold. Moreover, should this price prediction play out, I would expect the buying momentum to force the price beyond the 50 and 200 moving averages.
Should this happen, the 100-day moving average at $6.17, around 45% above the last price, becomes the first target.
That being said, for now, the price is below $4.40. And as long as that remains the case, buyers should stay patient. However, in my opinion, if today’s closing price is higher than $4.40, it offers bulls an opportunity to purchase EOS for a low-risk trade with an out-sized pay-off.
A daily close below $4.40 will invalidate the immediate bullish outlook. Therefore, newly-minted longs should close the position in this event and wait for a new buying opportunity.
EOS price chart (Daily)
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