Trade Recommendation: EOS
EOS (EOS/USD) is a market that has steeply dropped over the last few months. From a high of $8.6503 on May 31st, the cryptocurrency nosedived to as low as $3.06 on August 29th. That’s a whopping devaluation of 64% in three months.
Nevertheless, EOS is starting to show signs of life. The writings on the wall indicate that the coin is very likely to bounce soon.
Technical analysis shows that EOS is respecting support of $3.00. We have this view because the market refused to go below this level on August 29th. This ignited a rally that enabled EOS to take out its diagonal resistance. While the rally is not impressive, the breach of the resistance helps alleviate some selling pressure.
In addition, technical indicators reveal that bulls are mustering strength. We can see bullish divergences in both the MACD and the RSI. On top of that, we spotted a bullish cross on the MACD. These signals tell us that bullish momentum is coming back to life.
The strategy is to buy as close to $3.00 support as possible. If bulls can keep the market from falling further, they will launch EOS to our initial target of $4.00. Take that out and $4.60 is next.
The process may take a month.
Daily Chart of EOS/US Dollar on Bitfinex
Summary of Strategy
Buy: As close to $3.00 as possible.
Targets: $4.00 and $4.60.
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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