EOS price declined below $ 7.50 and later it found support at $ 6.80 against the US Dollar. EOS/USD is currently correcting higher towards a major resistance near $ 7.50.
Key Talking Points
- EOS price has formed a decent support near the $ 6.80 level (Data feed of Kraken) against the US Dollar.
- There is a crucial bearish trend line in place with resistance near $ 7.50 on the 2-hours chart of the EOS/USD pair.
- The pair may perhaps move higher, but it is likely to struggle near the $ 7.50 and $ 7.60 resistances.
EOS Price Analysis
There were further losses below the $ 8.00 level in EOS price this past week against the US Dollar. The EOS/USD pair even broke the $ 7.00 support and traded as low as $ 6.83
The chart above indicates that EOS price formed a base near the $ 6.80 level and started a short-term correction. It traded above the $ 7.00 level, but it seems to be facing hurdles near the 23.6% Fib retracement level of the last decline from the $ 8.47 high to $ 6.83 low.
Above $ 7.20, there is a significant resistance formed near the $ 7.50 level. An intermediate resistance is near the 100 simple moving average (2-hours) at $ 7.40. There is also a crucial bearish trend line in place with resistance near $ 7.50 on the 2-hours chart of the EOS/USD pair.
More importantly, the 50% Fib retracement level of the last decline from the $ 8.47 high to $ 6.83 low is at $ 7.65.
Therefore, if the price moves higher from the current levels, it could face a tough resistance near the $ 7.50 and $ 7.60 level. Should there a close above $ 7.60, the price may well break the $ 8.00 barrier.
On the downside, the $ 7.00 level is an initial support. Below this, the price could test the $ 6.80 support zone, which is an important barrier for sellers. As long as EOS price is above the $ 6.80 level, it may slowly make an upward move.
The current price action is positive above $ 7.00 level for a break above $ 7.20 to test $ 7.50.
The market data is provided by TradingView.
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