EOS price analysis: EOS/USD butchers key support areas, $7.0 is within reach

• EOS/USD needs to keep support at the 23.6% Fibo to stay away from further declines.
• EOS price breaks rising wedge pattern support, declines are in full swing.

EOS price is one of the biggest losers among the top ten largest cryptocurrencies by market capitalization. The trend is strongly bearish and it has plunged more than 3% on the day. There was an uptrend initiated after the price tested the $6.5 support.

While the price easily broke above the resistance at $8.5, it ran out of momentum to clear the resistance at $9.0 opening the Pandora box that has had it butcher its way through various support zones at $8.5, the 61.8% Fib level with the last drop from the high of $9.45 and allows of $6.55 close to 8.25 and finally the key support at $8.00.

The rising wedge pattern had been providing support in the past one week as seen on the chart below. However, the rising selling pressure above $8.00 broke the support culminating in the current breakdown that is threatening to slide below the short-term support at the 23.6% Fibonacci level between the highs of $9.45 and lows of $6.55 marginally above $7.20.

The MACD momentum indicator is moving further into the negative levels while the 50 simple moving average on the 1-hour chart has crossed above the 100-day simple moving average signaling that the sellers have the control. EOS/USD needs to keep the support at the 23.6% Fibo to stay away from further declines that are likely to come into contact with $7.00. Moreover, the previous low at $6.55 is still within sight.

EOS/USD hourly chart