The EOS price is fast approaching significant support, which in the past has offered a great entry point for bullish traders. Since February, every time EOS (EOS) has traded in the $3.50-$4.00 range, it has set the scene for a material upswing. This morning, EOS is changing hands at $3.81, which may offer an opportunity to accumulate on the dip.
Following the May high of $15.21, EOS has seriously underperformed its peers. At the current level, the EOS price is down 76% since May and is losing ground against rivals. The platforms market cap stands around $3.7b, down from $10b in May, ranking it the 39th-largest crypto asset behind Crypto.com Coin (CRO). However, if history repeats, EOS could be in for a period of outperformance.
The daily chart shows a long term trend line from February is seen at $3.52. Reinforcing the trend is a band of horizontal support between $3.00-$3.60. The trend and the horizontal support have been the catalyst for several rallies this year, including the run to May’s three-year high. Therefore, if EOS holds the line, it could signal the start of a trend reversal. In that event, an obvious target is the 200-day moving average at $5.34, just below the horizontal resistance at $5.50.
However, if the EOS price loses trend support, it would suggest severe deterioration in the outlook. On that basis, the bullish view becomes invalid if EOS closes below the trend at $3.52. Furthermore, if the lower edge of the horizontal band of support at $3.00 gives out, EOS is in trouble. Should the price break below $3.00, the bears will target the December 2020 low at around $2.00.
EOS Price Chart (Daily)
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