- EOS is trading at higher levels in October, although the upside is capped at $5.8.
- EOS/USD on the verge of a breakdown: Bollinger bands show.
EOS is trading at higher levels in comparison to the lows of September 2018. However, the upside is capped at $5.8 which is considerably below the highs of $6.68 in September. At the same time, the downside is protected at $5.0.
Meanwhile, EOS/USD is changing hands at $5.60, although it has corrected lower from the intraday highs of $5.80. The month-long bearish trendline indicates that the bulls are losing grip with each passing day. Nevertheless, EOS has been stable in the past two weeks. Applying Bollinger bands shows that the crypto’s volatility is at its lowest since the first week of September.
Constricting Bollinger bands indicate that the price is consolidating. Looking at the chart, we see that all the instances of consolidation have led to price drops. Therefore, it is likely that EOS will dive south and test the support at $4.75. But it is vital to note that not all consolidations indicated by Bollinger bands culminate in a price drop.
For instance, if EOS buyers can push past the trendline resistance, the trend could open the door for gains above $6.0. In the meantime, the support at $5.50 must continue to hold in order to avoid price dips below $5.0.
EOS/USD 15′ chart
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