- EOS witnessed a nice uptrend above $6.0 and formed a high at $6.48 before lower corrections swept in.
- EOS is currently trimming gains, besides it is down 3.35% on the day.
- The support at $5.80 must not be broken to avoid further breakdown heading to $5.40.
The upside movement that kicked off on Tuesday progressed without much struggle yesterday. EOS overcame the resistance at $5.8 – $6.0 in addition to breaking above the 23.6% Fib retracement level taken between the highs of $6.48 and lows of $5.80. The buyers pulled the price higher above $6.40 but the trend turned bearish on trading highs of $6.48.
EOS is still correcting lower at the moment, besides it is down 3.35 percent on a daily basis. The declines have extended below the 23.6% Fib level after breaking both the hourly 50-day simple moving average at $6.14 and the bullish trendline with a support at $6.10. EOS price is currently supported by the 100 simple moving average on the same chart at $5.90.
The broken support at the 23.6% Fibo will limit the gains marginally below $6.00. EOS must break above the resistance at $6.0 – $6.2 in order to confidently curve a new path heading to $6.50 and eventually $7.0. In the meantime, the support at $5.90 is important, while a slide below the next support target at $5.80 is detrimental and the digital asset could break down to test $5.40 and $5.00 respectively.
Looking at EOS/USD hourly chart, it shows that technical signals are positive. The positive news surrounding the upcoming EOS referendum must continue to improve trader sentiments for EOS. Consequently, EOS is still primed for gains towards $7.00 but as mentioned a break above $6.2 is vital while the bulls must not allow a slide below $5.80 in the near-term.
EOS/USD 1-hour chart 
Share
