EOS Price Analysis: EOS/USD Bull Flag Set-Up Eyed; EOS Remains Number 1 in China

  • EOS/USD has gained over 70% in the latest bull run, with further upside potential.
  • Report from the Ministry of Justice in China sees EOS firmly ranking number 1 spot of popularity within the country.

EOS/USD is within a strong upside trend currently, racking up the recovery with some pace. Since the bulls really came back into life one 15th December, the price has gained as much as 70 percent, up to Sunday. EOS heading for its first week of gains, this coming after six consecutive weeks closing firmly in the red. This was seen across the market, but EOS particularly was one of the standout under performers. A reversal doji candlestick can be seen via the weekly view, which technically confirms the recovery for now. Bullish signs remain evident.

EOS/USD weekly chart. First weekly gain in six weeks. Doji candlestick suggests of reversal.

EOS Ranked Number 1 – Chinese Ministry of Justice

The dubbed ‘Chinese Ethereum’, EOS, has topped the popularity list in a latest report from the country. According to the Ministry of Justice, conducting a ‘Global Public Blockchain Technology Assessment Index Report’, EOS was the highest rated cryptocurrency in the world. It topped the list comfortably versus its peers. It was covered that “EOS topped the list with a total score of 156.1 points. Ethereum ranked second, with an assessment index of 136.4.” This also surprisingly being well ahead of the number one cryptocurrency by market cap, Bitcoin, all the way down in 18th position.

Bull Flag Formation

EOS/USD 4-hour chart. Price action has formed a bullish flag pattern formation, subject to an extended move higher.

Following on the detailed behaviors for EOS, somewhat of a bull flag formation can be observed via the 4-hour chart view. The price has been gently grinding higher since the 18th December, a big of a slow down in comparison to the jump seen initially from the 15th. The upper trend line of the flag is tracking around $3.05-$10, with lower support noted at around $2.60. Given this technical formation, the potential for a chunky breakout to the upside is there should the bulls maintain current upside momentum and force a breach of the near-term resistance trend line.

Upside Target

If this price action plays out to the textbook and sees that burst higher from the pattern, then there isn’t much in the way of resistance until $4 territory. During the midst of the market fall in November, EOS/USD consolidated briefly around $4.50 area, between 15-19th December. This coming just before the bears extended their move to the downside. Further north, eyes would be on a return to the $5 region, which would be pre-November fall levels. Once again, there is little in the way of major barriers should $4 be reclaimed.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.