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EOS price analysis: Can the triangle trigger a break from this range?

  • EOS corrected higher from lifeline support only to be range-bound below $5.7.
  • The contracting triangle pattern could result in both a breakout or a breakdown (consolidation levels).

The consolidation in the market resembles the one that led to the unexpected declines last week. Investors expected a bullish break but the market had other plans. In tandem with the global stock market cryptocurrencies explored the levels below major support areas. EOS, for example, corrected lower testing the key support at $5.0 from the highs above $6.0.

The buyers were able to bring the price above $5.2 but the bounced was limited at $5.3 until the brief bullish break this Monday. EOS retraced much higher towards $6.0 but failed on brushing shoulders with $5.7. Slight bear corrections followed as EOS/USD retreated into the current range with the upper limit at $5.7 and the lower limit at $5.5.

There is a contracting triangle pattern that has form on the chart of EOS/USD. A break out of this triangle to the upside is expected to attack $6.0 and reclaim the levels towards $7.0. On the flip side, a bear break below the triangle support will cancel the weekly gains to test last week’s support at $5.0.

In the meantime, the 100SMA is offering the support at the lower range limit while the upside is immediately constricted at $5.6. The next support is the 50SMA currently at $5.44. The char shows that the bears are gaining ground against the bulls in the short-term. Therefore, it is essential that the bulls keep the price in the range while the battle for a break towards $6.0.

EOS/USD 1-hour

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