EOS has been underperforming compared to many large cap coins in the crypto market since the second half of 2018. Many people argue that it is dead and will never recover to reach its all time high price of 23 USD.
Well, EOS in 2021 seems bullish more than ever due to fundamental and technical aspects. In this article I will be going through some in-depth analysis of EOS charts in several time frames as well as charts of EOS compared to Bitcoin and Ethereum prices to give a clear picture of the possible fluctuations in EOS price in the short and long terms.
On the following hourly chart we can see that EOSUSD has been moving within a falling channel and it finally broke out of it with large volume. Now, we can expect EOS to surge past the 4.00 USD mark towards the strong resistance level around 4.37 USD. In case price decides to drop from this current level then a retracement should NOT fall below the range 0.5 to 0.618 Fibonacci levels
EOSUSD - 1H Chart (Click to View)
If we zoom out of the chart to higher time frames, on the 4 hours chart, we can see that EOS is forming a falling wedge which is a signal of the end of the downtrend that started in May. The close above the upper line with huge volume is a strong bullish sign for EOS.
Looking at other indicators such as Relative Strength Index (RSI), EOS found a good support at the 50 mark which means price is still bullish biased. Price is now ready to go up to retest the strong resistances at 4.37 USD then at 7.60 USD.
EOSUSD - 4H Chart (Click to View)
Bullish divergence on the MACD indicator can be observed on the 12 hours chart. Along with decreasing volume which indicates a weak bearish wave. On RSI we can see that it crossed the 50 mark after finding good support at the 30 oversold mark.
EOSUSD - 12H Chart (Click to View)
Now, on the macro scale on the weekly chart, we can see that EOS has been maintaining its bullish trend since the beginning of 2020. Forming successive higher lows and higher highs. Also, price has already touched the 3.10 USD price earlier this month which is located at the massive accumulation zone that EOS has been hovering around for nearly 3 years now.
Yesterday, the weekly candle closed with a large downward wick (hammer candle) which is a strong bullish sign as well. Personally, I expect EOS to surge past all time high before the end of 2021.
EOSUSD - 1W Chart (Click to View)
We all know that majority of the cryptos out there will be outperforming fiat in the long run. So, what we need to pay more attention to is the EOS growth pace against the giant cryptos such as Bitcoin and Ethereum.
On EOSBTC weekly chart, we can see that price has been forming a falling wedge since the all time high of 2018. Then in March, it bottomed out around the all time low price forming a double bottom reversal pattern.
In addition, recently in May, price broke out of the three years strong resistance with large volume. We can also observe a bullish divergence on the MACD which suggests that EOSBTC is near the bottom and soon to change its trend to the bullish side. Now, in my opinion I think EOSBTC is going down to retest the resistance that turned to a support and soon will take off to higher highs.
EOSBTC - 1W Chart (Click to View)
Looking at EOSETH chart, it is not the most pleasant looking chart out there. However, for each bear market there is always a point of reflection. And according to the following chart, we can see a glimpse of hope of a huge reversal forming.
EOSETH has the potential to form a double bottom if it maintains the all time low level as well as break the upper resistance and close above it. Looking at the RSI, it found a good support around the 30 mark. Personally, I expect EOS to have massive gains against ETH in the coming months.
EOSETH - 1W Chart (Click to View)
Bottom Line, according to all the above charts combined. Future looks so bright for EOS. EOS is one of the best high reward low risk cryptos you could buy. It is still within the 3 years accumulation zone while maintaining a healthy uptrend. This is of course without talking about the good EOS fundamentals which are overflowing and will soon cause price to catch up and go past its all time high.
Phantom Puppeteer is not a registered investment advisor, legal advisor, tax advisor, or broker/dealer. All investment / financial opinions expressed in any-and-all posts on this page, including screenshots & captions, are from the personal research and experience of the owner, Phantom Puppeteer, and are intended to be interpreted as educational material only. Although best efforts are made to ensure that all financial charts and commentary are as up-to-date as possible, there may be times where price moves beyond key levels before the chart can be posted. Alas, this is part of the fast-paced financial sector and cannot be avoided. Also, occasionally unintended errors and/or misprints may occur.
I particularly eyed the EOSUSD and bearish breakouts. Volume is huge for EOS.
On a nontechnical note, EOS' capacity for speedy transactions and meaningful applications makes conventional volume characteristics of traditional PoW-influenced infrastructure a formidable adversary. Consistent development of EOSIO combats this. Taken together, these two factors seem to cancel each other such that we get a stable, or lagging, price.
With influx from the DAPP Network, Chintai, and of course, Bullish.com, the EOS mainnet will finally have the taste of liquidity and volume to demonstrate its capacity.
Congratulations Phantom! I barely knew about EOS before I started reading Cryptowriter, now I'm at this point thinking about investing a decent amount to EOS. (I have a little amount of EOS now.)
Technical side of EOS and the chain looks amazing, besides it's among well-known cryptos. I think the time will come for EOS soon or later, but it will definitely come. Bullish might be a good start for sparks, we will see : )
Thanks for the review!