Wedge Pattern Leads EOS Price To $3 Mark

The recent correction phase discounted the EOS price by 28% and dumped it to $2.12 support. Responding to the falling wedge pattern, the altcoin bounced back from the mentioned support and continued the north march towards the $3 mark. Can buyers trigger the wedge pattern to bolster a bullish rally? 

Key points: 

• The EOS price is nearing a $2.7 breakout
• The EOS price has soared 20% in the past six days.
• The intraday trading volume in the EOS is $999 Billion, indicating a 128% gain.

Source- Tradingview

Since last year the EOS/USDT pair has been lowering under the influence of a falling wedge pattern. The recent bull cycle from the support trendline($1.83) pumped the altcoin to the $3 mark; however, amid the current sell-off in the crypto market, the coin price tumbled by 28%.

The EOS price rebounded from the $2.12 support, indicating traders are buying on dips, and the price is likely to retest the aligned resistance of $3 and descending resistance trendline and 200-day EMA.

For EOS holders: Traders should keep a close eye on the $3 resistance as the potential rally could breach the descending trendline and 200-day EMA. 

A bullish breakout and sustainability above this resistance would indicate a positive turn in traders’ sentiment, which gives the first target $3.7.

Alternatively, a bearish reversal from the $3 resistance would keep the pattern intact with the next bottom target till $1.9. 

Technical indicator

RSI– The RSI slope jumps back into the bullish region, indicating the traders are optimistic about a short-term rally. 

EMAs– The coin price reclaimed the 20, 50, and 100 EMA undermines the last correction in late March. However, the 200-day EMA aligned with the $3 resistance, strengthening the supply pressure for buyers. 

• Resistance levels- $2.7, and $3
• Support levels- $2.14 and $1.8

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