EOS - 6h. Buyers Prepare for Local Growth with a Target of $6.8We noticed that many are interested in the good old EOS. Relatively recently, we made a global idea for this coin:
Today we are going to make a small update and share our thoughts in the short term.
As we can see in the chart, buyers failed to build a strong wave of growth after the fatal fall in the price of EOS from May 19 to 23.
The trading volumes during the local upward wave were about the same as during the downward wave. Of course, these volumes are not enough to confidently state that a new wave of growth has begun on the EOS market. If we pay attention to the trading volumes on May 5 and compare with the current ones, it becomes clear why.
However, the comforting news is that the current price drop looks rather sluggish and takes place at low volumes. Buyers found a good spot for defense in the local range of $4.8-5. In addition, the trend line is in this range, which buyers confidently hold from December 23.
Therefore, if the weekend is calm and we do not see the growth of aggression from the sellers, we will expect a local reversal of the market and a test of the mark of $6.65. We are not looking higher for now, as we believe that the price of EOSUSDT will continue to consolidate in a wider triangle.
If we look at the daily timeframe , we see that the EOS price is now at a critical point:
The chart shows that the range of $4.45-4.78 holds the price perfectly for 3 years. The loss of this range has always meant the continuation of a powerful downward trend. At the moment, the price is above this range. The main task of buyers is to maintain this range for the next week. This achievement of buyers will allow starting the formation of a consolidation triangle above this range and will increase the chances of a price shot up already to the level of $8-8.6.
A similar critical situation can be seen on the EOSBTC chart:
At the moment, sellers manage to push the price down without much effort. However, in the current price range, we expect to see a struggle. Having lost the range of 1288-1452 satoshi, the EOS market has every chance of falling by another 30-40%.
Therefore, you should take your time this weekend and carefully monitor the market sentiment. The next week may be decisive in the medium term.
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We create both short-term ideas (for a local understanding of the market situation) and medium-term forecasts of price movements.
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