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In this analysis, we explore EOS' weekly chart in order to determine significant zones of resistance and to confirmations that provide weight to the narrative of a bullish rally.
Analysis
- To begin with, we can notice that we are currently testing the descending trend line resistance - This trend line has been valid for over a year, and a break and close above the resistance is necessary for bullish confirmation - We also have strong historical resistance around the 4.94 USDT level - Counting Elliott Waves, we could see a potential Impulse Wave (12345) in play, leading up to the 0.786 Fibonacci retracement resistance at 7.12 USDT - However, we are trading below the Ichimoku Cloud, which has been acting as strong resistance for a while - Nevertheless, the Relative Strength Index (RSI) is at neutral levels, forming higher lows and higher highs - The Moving Average Convergence Divergence (MACD) has formed a golden cross, but seems to lack the bullish momentum necessary for a breakout.
What We Believe
We believe that once we break and close above the descending trend line resistance, a clear confirmation would be provided for a major bullish rally in play.
Let us know what you think in the comment section below