Hi friends! Welcome to this highly requested analysis on EOS! Let's get right to it! Looking at the four hour chart, you can see that EOS has printed a monster rally, off of the back of the move generated by Bitcoin. This rally was so significant for EOS, that it caused the crypto to surpass Litecoin in market capitalization, bumping it into 5th place market wide. So, now that this big rally has happened, where do we go from here? The first thing that we have to consider, is the state of Bitcoin, simply because BTC is controlling the cryptosphere right now. However, in terms of the technical data on this chart, I see that price action is forming an obscure flag that looks like a bull flag, but it actually isn't. This is a formation that I like to refer to as a false flag. In the years that I've spent as a trader and an analyst, I have found these flag formations to break down eventually. They can be extended, and rally upward for a considerable period of time, but they almost always break to the downside. I can't really find much literature on this, but I've decided to call them false flags. An identical false flag exists in Bitcoin, so be careful.
If you look closely, you can see that it found resistance at the bottom of the 50% retrace. Once the breakdown starts to occur, initial support may be found at the 61.8% retrace, around 7.45. That level will be converging with the 50 EMA (in orange) so that would increase the likelihood of initial support. Below there, EOS has the 200 EMA (in purple) and then the rising dashed support level.
To add to the case of an impending breakdown, the MACD is rolling over like it wants to form a hard bearish crossover. So, despite this powerful surge higher, I see some technical weakness that is developing. For educational purposes only, if you've acquired a nice gain from this rally, now would be a good time to take some profits off of the table.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
If you look closely, you can see that it found resistance at the bottom of the 50% retrace. Once the breakdown starts to occur, initial support may be found at the 61.8% retrace, around 7.45. That level will be converging with the 50 EMA (in orange) so that would increase the likelihood of initial support. Below there, EOS has the 200 EMA (in purple) and then the rising dashed support level.
To add to the case of an impending breakdown, the MACD is rolling over like it wants to form a hard bearish crossover. So, despite this powerful surge higher, I see some technical weakness that is developing. For educational purposes only, if you've acquired a nice gain from this rally, now would be a good time to take some profits off of the table.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-