Trade Recommendation: EOS
There’s blood on the streets of altcoins as many dump their positions in favor of the surging Bitcoin (BTC/USD). Many large caps including EOS (EOS/BTC) are at the point where they’re attractive for bottom picking. EOS has gone from recent highs of 0.0011478 on April 3, 2019 to lows of 0.00074 today, May 10th. That’s a decrease of over 35% in about a month.
Weak hands may be panicking now but those who want to enter at a heavy discount should consider going long on the market.
Technical analysis shows that EOS/BTC is headed for support of 0.00073. This is a critical area for the market as this coin struggled to take out this level from December 2018 to February 2019. Now that bulls control 0.00073, we expect them to fight hard to preserve the support.
The good news is that technical indicators support our bias. The daily RSI is already in extreme oversold territory. In addition, volume has been on a decline. These signals tell us that sellers are starting to lose interest in dumping at current levels. The drying supply plus the possible surge in demand, with EOS approaching 0.00073, can be a powerful duo for a bounce.
The strategy is to buy as close to 0.00073 as possible. If bulls can keep the market from falling lower, they will likely generate a rally to our targets of 0.00086 and 0.00093.
The process may take less than a month.
Daily Chart of EOS/Bitcoin on Binance
As of this writing, the EOS/Bitcoin pair is trading at 0.0007617 on Binance.
Summary of Strategy
Buy: As close to 0.00073 as possible.
Targets: 0.00086 and 0.00093.
Disclaimer: The writer 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.