- EOS grinds higher in the confines of an ascending channel.
- Trading past the channel resistance could open the way for a retracement towards $4.0 (supply zone).
EOS bulls are flexing their muscles on Friday during the Asian hours. This is a sign of an action-filled session during the weekend. The crypto market is relatively in red. The drab trading is happening after traders took profit due to Wednesday’s brief surge. Apart from EOS, other selected digital assets in the green are Bitcoin Cash (BCH) and Ethereum Classic (ETC).
EOS commenced the session at $3.12 and touched $3.16 to the upside. There has been a lower action with the bears inching closer to $3.0. However, an intraday low has formed at $0.309 before the current northwards adjustment.
The ascending channel has been tested severally on both sides. EOS bulls must breach $3.2 immediate resistance and focus on trading above $3.4. With a shift in the target above the channel resistance, correction towards $4.0 (supply zone) will be an easy achievement.
Meanwhile, offering immediate support is the 50 Simple Moving Average (SMA) on the four-hour chart. The Relative Strength Index (RSI) is lethargic at the average suggesting sideways trading as the most probable direction. Similarly, the Moving Average Convergence Divergence shows (negative divergence at +0.03) that the bears are keen on tightening their grip.
EOS/USD four-hour chart