EOS Price Analysis: EOS Uptrend to $20 Curtailed as Hunt for Higher Support Begins
- EOS three-month rally stalls at $15, cutting short the bulls' target at $20.
- The bulls' primary goal is to establish support at the ascending parallel channel's middle boundary.
EOS's three-month winning streak has surprised many and elevated it to a top 20 crypto asset. As seen on the chart, the uptrend has not been without pullbacks, but the price has formed a strategic ascending parallel channel since March.
Following the most recent lift toward $20, EOS hit a barrier at $15. The upside was also limited by the channel's upper edge, explaining the ongoing retreat. If higher support is not established in time, EOS's consistent winning streak will lose, eyeing levels under $10.
EOS engages reverse gears as bears make a comeback
The smart contract token teeters at $13 at writing and in the wake of a 44% upswing in 24 hours. Over the last seven days, Ripple has accrued nearly 110% in gains. However, data by CoinGecko reflects the ongoing correction with a 3.6% loss in the previous hour.
Higher support is needed to resume the uptrend. However, the Relative Strength Index (RSI) on the daily chart reinforces the bearish outlook as it retreats from the overbought area. The declines will likely catch momentum if the RSI's movement extends toward the midline and the oversold region, respectively.
EOS/USD daily chart
It is worth mentioning that losses will intensify if the middle boundary support caves. On the downside, support is expected at $10, but if push comes to shove, the bearish leg may stretch to $7.
EOS bullish outlook
The daily chart also shines a light on a bullish impulse from the SuperTrend indicator. This indicator follows the trend of an asset and foresees if investors should take a long or short position. When the Super Trend indicator turns green and moves below the price, it implies that it is time to buy.
EOS/USD daily chart
A similar technical signal has been observed with the Parabolic SAR. Like the SuperTrend, this indicator reinforces the asset's trend. For instance, the trend is strongly bullish when the parabolas (dots) move beneath the price. As long the Parabolic SAR stays below EOS, the price will resume the uptrend toward $20.