Trade Recommendation: EOS

EOS

EOS (EOS/USD) is a market that’s almost ready to bounce. The cryptocurrency has been on a downward spiral ever since it posted a 2019 high of $8.6503 on May 31st. Recently, it plunged to as low as 4.3196 on July 11th. That’s a massive drop of over 50% in less than a month and a half.

However, EOS bears are beginning to show signs of exhaustion. Now may be a good time to bottom pick the market.

Technical analysis shows that EOS is respecting our range low of $4.50. We have this view because bulls quickly emerged when the market dropped below this level on July 11th. In addition to that, technical indicators are favoring the bulls.

First, the daily RSI is flashing oversold signals. This tells us that we can expect a selling relief soon and this might inspire bulls to instigate a bounce.

Also, the 200-day moving average is acting as support around $4.50. The indicator will help keep the price from falling further.

Lastly, $4.50 is a support level that has only been tapped twice this year. This means that the demand area is far from drained. At the very least, it has one more bounce in it before it gives out.

The strategy is to buy as close to $4.50 support as possible. If bulls can keep the market from falling further, they will launch EOS to our initial target of $6.00. Take that out and $7.50 is next.

The process may take a month.

Daily Chart of EOS/US Dollar on Bitfinex

EOS crypto chart
As of this writing, the EOS/US Dollar pair is trading at $4.808 on Bitfinex.

Summary of Strategy

Buy: As close to $4.50 as possible
Targets: $6 and $7.50
Stop: $4.30

 

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.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.