Trade Recommendation: 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
Summary of Strategy
Buy: As close to $4.50 as possible
Targets: $6 and $7.50
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.
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