EOS price started a fresh decline from the $1.15 resistance zone against the US Dollar. The price is now trading below $1.15 and the 55 simple moving average (4-hours). There was a break below a key rising channel with support near $1.10 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase). This article analyzes the recent price decline and provides insights into the potential future direction of EOS price.
EOS Price Analysis
EOS price started a fresh decline after facing resistance near the $1.15 level against the US Dollar. The price broke the $1.12 support level and settled below the 55 simple moving average (4-hours).
There was also a break below a key rising channel with support near $1.10 on the 4-hours chart of the EOS/USD pair. The pair even broke the $1.05 support level and traded as low as $1.01.
At present, the price is consolidating losses above the $1.01 level. An initial resistance is near the $1.05 level. It is near the 23.6% Fib retracement level of the recent decline from the $1.15 high to $1.01 low.
The first major resistance is now forming near the $1.10 level. It is close to the 50% Fib retracement level of the recent decline from the $1.15 high to $1.01 low. The main resistance is now near the $1.15 level, above which the price could start a strong increase.
On the downside, an initial support is near the $1.01 level. The main support is now near the $1.00 level. A clear break and close below the $1.00 level could push the price towards the $0.90 level in the near term.
Insights into the Potential Future Direction of EOS Price
EOS price faces significant resistance at the $1.15 level. The recent decline from this level suggests that the price may struggle to break above this resistance in the near term. The break below the rising channel support near $1.10 also indicates that the bulls may be losing control.
The 55 simple moving average (4-hours) is also currently acting as a resistance, adding to the bearish pressure on the price. Therefore, there is a high probability that the price may continue to face selling pressure in the short term.
On the other hand, a break and close above the $1.15 level could lead to a strong increase in the price. The next major resistance is near the $1.30 level, above which the price could even test the $1.50 resistance zone.
Conclusion
EOS price is currently facing resistance at the $1.15 level and is now trading below the 55 simple moving average (4-hours). The recent decline from this level suggests that the bulls may struggle to break above this resistance in the near term. However, a break and close above the $1.15 level could lead to a strong increase in the price. On the downside, the $1.00 level is a key support, and a break below this level could push the price towards the $0.90 level. Traders should exercise caution and monitor the price action closely.
