Although EOS (EOS) rebounded significantly from its December 4 low, it still has a long way to go to confirm an upside reversal.
On December 4, EOS dropped significantly to $ 2.39. However, the rebound that followed showed that the decline confirmed the third long-term upward support line (green symbols). This line has been formed since March 2020.
Despite the recovery, technical indicators offer a relatively neutral outlook.
The MACD, formed from short-term and long-term moving averages (MA), falls and lies exactly on the zero line, which means that short-term and long-term moving averages are moving at the same speed, but short-term ones. … slowed down. This is a sign of a weakening trend.
Likewise, the RSI is just below 50. The RSI is a momentum indicator and readings below 50 are considered bearish.
EOS / USDT Weekly Chart | Source: TradingView
Trader @ Mesawine1 drew an EOS chart showing the token is consolidating in one area and it could scan the June floor again.
A source: Twitter
After the tweet, EOS did it and bounced back. Although it initially looked like it fell below the $ 3.20 zone, the price has since retraced, showing the crash as just a divergence (red circle). This is a bullish development, usually followed by an upward movement.
However, the token is still moving along the downward resistance line. Until a breakout occurs, the bullish reversal cannot be confirmed.
EOS / USDT daily chart | Source: TradingView
EOS / BTC
The EOS / BTC chart is clearly bearish as the pair hit a new all-time low of 5420 Satoshi on December 4. As a result, the pair is now in a bearish opening phase.
Until EOS manages to overcome the 8000s Satoshi area again, the long-term trend is considered bearish.
EOS / BTC Weekly Chart | Source: TradingView
You can see the price of EOS here.