EOS (EOSUSD) Technical Analysis: New Bullish Channel to Watch

EOS is trending higher on its 1-hour time frame as it forms a new bullish channel. Price just bounced off support and has made its way past the mid-channel area of interest to show sustained upside momentum.

The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the selloff is more likely to take place from here. Then again, the gap between the moving averages is narrowing to reflect weakening selling pressure and a potential upward crossover.

RSI is turning lower after recently hitting the overbought zone. This indicates that selling pressure is about to return and possibly push EOS price back to the bottom of the channel once more. Similarly stochastic is making its way down from the overbought zone to signal that a return in selling momentum is in the works.

Cryptocurrencies appear to be pulling off their lows recently, with EOS chalking up a respectable gain in the past 24 hours. Just recently, EOS released a new version that featured a 35% increase in transaction speed and enhanced tooling for improving the smart contract development as the official announcement reads:

“Our own internal benchmark tests show upwards of a 35% increase in likely transaction speed when using token-transfers-per-second as our base case.”

It explained: “This benchmark represents testing the EOSIO software on a private network. We are projecting noticeable improvements to sustainable transactions per second, reduced CPU costs, and lower latency on all EOSIO based blockchains.”

Furthermore, the company introduced Eosio-init which generates a template for smart contract development. According to the announcement:

“It creates a new binary within EOSIO that builds a basic structure for you to more easily get started with smart contract development.”