- High volatility in the crypto market hinders adoption.
- EOS rejection at $5.5 culminates in bear movements towards support $5.4.
The volatility levels in the market are beginning to change the direction. Digital assets have in the last couple of months suffered under decreasing trading activities. The high volatility in the market hinders adoption in the mainstream financial sectors but is a big attraction to speculative traders and investors. Bitcoin (BTC) volatility levels are below $100; hitting an 18-month low, see the story here. The rest of the cryptocurrencies, specially the top 20 assets are trading in tandem with Bitcoin with most stuck in bear ranges unable to make significant headway.
EOS, for instance, has been stable above $5.4 but on the upside a cap prevents gains above $5.5. According to the Bollinger bands on the hourly chart, price volatility has increased in the last 24 hours. EOS made a nice bullish swing on Friday zooming above the moving average resistance. Nonetheless, the bulls failed to retrace above $5.5 with the trend culminating in an ongoing gain trimming activity.
EOS is changing hands at $5.42 with the upside immediate restricted by the 50 SMA. The price is heading for the support at $5.40, besides the stochastic is heading south, conforming the bears tight grip. EOS is likely to correct lower and touch $5.00 as opposed to recoiling higher above $5.5.
EOS/USD 60’ chart