The EOS price is desperately trying to break out of its recent downtrend. Before bulls can dream of $6.00, EOS has to deal with a more pressing matter.
EOS is last trading at $5.0855 unchanged from yesterday’s close.
The EOS price never really recovered from the carnage in May. The current level is still 65% lower than the $14.9300 multi-year high it set on the 12th of the month.
The coin could be considered an old-timer in the crypto space. It was released in 2018 to simplify the building of decentralized apps (DApps). Since then, numerous competitors have entered the space, drawing investment away from EOS.
One of the biggest complaints is it offers a more centralized platform than others. A feature, its critics would argue, contradicts the ethos of cryptocurrencies.
Nonetheless, its 538% rally at the start of 2021 suggests the legacy coin still has some supporters.
Presently, EOS has a market cap of $4.86 billion and ranks as the 26th largest crypto asset by valuation.
EOS Technical Outlook
The 4-hour chart shows that since the 3rd of June, the EOS price has been trending lower. Furthermore, a trend line is clearly visible at $5.20.
This is the immediate resistance. A break of this should lead EOS higher to yesterday’s $5.47 top. Above that, the obvious target is $6.00, and beyond that, the $6.58-$6.80 range.
A pick-up in trading volume at the lower end of the recent range could point to accumulation. Having said that, the MACD indicator, although still positive, shows bullish momentum is fading.
Therefore, bulls should wait for a decisive break of resistance before adding long positions. Placing a stop below today’s $4.8990 low would offer a good risk/reward profile.