EOS has seen an enormous price increase over the past 7 trading days which totals 23%. The cryptocurrency is now trading at a price of $5.28 after EOS has seen a further 47% price rise over the past 30 days. This price increase has been particularly helped with Bitcoin being able to break back above the $5000 handle over the past couple of days. However, over the course of the past 2 months, EOS has also been rising against Bitcoin itself.
Over the past 3 days EOS/USD has risen and broken above the previous resistance at the $4.48 level to create a fresh 2019 high at $6.00. The market has pulled back slightly from this $6.00 level but has remained above the previous resistance at $4.48.
In this article we will take a look at the potential for EOS to rise by 50%, in April 2019, and hit the $8 level.
Let us take a look at the EOS/USD market and highlight some areas of resistance for the bulls before being able to reach the $8 level.
EOS Price Analysis
EOS/USD – SHORT TERM – DAILY CHART
What Has Been Going On?
Taking a look at the daily chart above, we can see that EOS had managed to break above the 100 day moving average during February 2019 but had run into resistance at the $4.48 level. During March 2019, the market fell but had found support at the 100 day moving average where a rebound had occurred. EOS/USD then went on to rise throughout the rest of the month until reaching the $4.48 level.
As April 2019 started to trade, we can see that the Bitcoin price surge had caused EOS/USD to break above the resistance at $4.48. The market continued further higher over the following 3 days and had even managed to spike higher to create a fresh 2019 high at the resistance at the $6.00.
EOS/USD has pulled back slightly and is now trading above support at a short term 1.272 Fibonacci Extension level (drawn in purple) priced at $5.19.
What Is The Short Term Trend For EOS/USD?
The break above $4.48 has now rendered EOS/USD as a bullish trading condition. For this bullish condition to be invalidated, we would need to see price action drop back beneath the $4.48 level.
Where Is The Resistance On The Way Up To $8?
If the bulls continue with their pressure and push the market higher, we can expect immediate resistance above at the short term 1.414 and 1.618 Fibonacci Extension levels (drawn in purple) priced at $5.52 and $6.00, respectively. The resistance at $6.00 is further bolstered as it is the October 2018 high.
Above $6.00, higher resistance then lies at $6.50 followed with more resistance at the long term bearish .382 Fibonacci Retracement level (drawn in red) priced at $6.93. This long term bearish Fibonacci Retracement is measured from the June 2018 high to the December 2018 low.
If the bulls manage to break above $7.00, we can then expect resistance at the medium termed 1.414 and 1.618 FIbonacci Extension levels (drawn in green) priced at $7.18 and $7.76, respectively. If the buyers can clear these levels of resistance the market will be free to make an attempt at the $8.00 level.
What Are The Technical Indicators Showing?
The RSI has now entered into extreme overbought conditions which indicates that the market is slightly overstretched. EOS/USD may have to pull back slightly over the next couple of days before being able to continue its climb higher.
EOS/USD has the potential to reach $8.00, with ease, so long as the resistance at $6.00 can be cleared. Above this, the only point of serious contention before $8.00 is at the bearish .382 FIbonacci Retracement level at $6.93. However, if Bitcoin continues to rise as aggressively as it has been during April 2019, EOS/USD will reach $8.00 very quickly.