EOS (EOS), once a wildly popular altcoin, has had an okay year thus far. It was outperformed by Bitcoin (BTC) for most of the year, although there was excellent profit to be had between January-May of this year on the USD side. Now, after months of retracing and downside, EOS is showing strength and may be ready to move up again.
We start with the weekly EOS/USD chart, whose most important feature is probably the impending histogram cross. We see that this indicator looks likely to cross during the coming week, after months and months of downtrending and reversing momentum. The momentum isn’t pushing up too hard, however, with a flat trajectory up rather than an arched one.
A couple of solid weeks have put EOS above the 8 EMA and held it there, which we can think of as the toehold of a long term uptrend. Last week closed with a bullish engulfing candle, and it wouldn’t be a surprise to see the 21 EMA (orange) tested this week at about $3.80.
On to the daily, we see that last month’s break above $3.20 has held with plenty of retesting on top of the 55 EMA. The two most recent price peaks have been supported with higher highs on the RSI – although we see a bit of a bear divergence on the histogram. Bitcoin’s recent volatility is probably helping to pump the breaks a little, as most altcoins sell off whenever Bitcoin is trembling.
One worrying sign here is that volume has been falling with the price increase, whereas we would like to see increasing volume. This, along with the histogram, may suggest more churning near the 55/21 EMAs or even back at $3.20.
Turning now to a 3-day EOS/BTC pairing, we see what looks very much like a reversing market. A double bottom with increased strength marked the beginning of a short term uptrend, which may now turn into a long term uptrend. The resistance at about 40k satoshis looks like it’s being broken, and strength on the RSI is continuously building.
The next major resistance from here as at about 47k satoshis, which marks the zone where EOS’ price fell through multi-year support. That’s a handsome 18% worth of upside, if the present resistance is broken.
EOS definitely is looking good, and what has been a short term uptrend could translate into a much larger one heading into 2020.
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