EOS (EOSUSD) Technical Analysis: Heading Back to Range Resistance

EOS is trending higher as it moves above a short-term rising trend line connecting the lows since the dip to the range bottom. Price is also stuck in a larger range with support at 2.275 and resistance at 2.550.

The 100 SMA is above the longer-term 200 SMA to signal that the path of least resistance is to the upside or that the uptrend is more likely to gain traction than to reverse. The 100 SMA also seems to be holding as dynamic support and the 200 SMA is just close by to serve as a floor as well.

Stochastic is pointing up and has some room to climb before hitting the overbought zone, which suggests that buyers could stay in the game for a bit longer. Similarly RSI is just turning higher to indicate that bullish pressure is present and could stay on until overbought conditions are seen. A break below the short-term trend line, however, could spur another dip to the bottom of the range.

Cryptocurrencies have been struggling to hold their ground in the past few days but key support levels appear to be defended well. It remains to be seen, though, if the rallies could still pick up as traders would like to see actual developments in the space rather than riding on pure expectations.

Also, note that Chinese markets are closed for the holidays which could mean lower liquidity throughout. This could keep the possibility of seeing bigger and more volatile moves in play, especially if a big catalyst comes up in the days ahead.

As for EOS itself, it has been overtaken by BCH in terms of market capitalization rankings, which puts it on the back foot somewhat. During these cases, it’s normal to see larger dips in the overtaken coin as traders transfer some of their holdings to the superior one.

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