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

Disclaimer

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.