EOS trading: Following The Bearish Divergence Signal, Price May Fall Significantly

EOS trading: Following The Bearish Divergence Signal, Price May Fall Significantly
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EOS Price Analysis – April 17

Ranked fifth largest cryptocurrency, EOS market has witnessed a price increase in the last three weeks of trading with current trading price at around $5.4 level. EOSUSD remains bullish, but moving side-way on the medium-term indicator; while EOSBTC breakout from a bullish channel. However, a bearish divergence move is signaled for EOSUSD market.

EOS/USD Market

Key Levels:
Resistance levels: $6, $6.4, $6.6
Support levels: $5, $4.6, $4.2

After consolidating in late March, EOS surged and followed a green trend line in a zigzag pattern before dropping. Sitting on the green line since yesterday, a rebound could meet resistance at $6 level; re-testing the monthly high. A successful breach above $6 may launch a new price at around $6.6 and beyond.

EOSUSD, 4H Chart – April 17

If the bears initiate a strong entry now, selling pressure may plummet at $5, $4.6 and $4.2 support levels which could position the trade in a bearish zone. For now, the bulls are still holding position strongly as the green line acts as a defensive line.

Currently, the 4-hours MACD indicator has reflected a downward move since April 4. EOS is now moving side-way on the indicator; suggesting a potential change in trend.

EOS/BTC Market

Following an uptrend, EOS has been trading within the range of a channel for the past two weeks after rising from 0.0009 BTC low. As price action respects the trend lines, the token broke down as selling pressure head towards a major support level at 0.001 BTC.

EOSBTC, 4H Chart – April 17

A possible swing high may locate quick resistance at 0.00108 BTC level. With the current breakout signal, the bulls may have to play along with a selling momentum which slowly plays out. If price furthers below 0.001 BTC support, EOS could make bottom at the March low of 0.0009 BTC.

A look at the 4-hours MACD revealed a slope move as price trends high. A divergence move is actually signaled for EOS market which is just reflecting as breakout occurs.

Please note: insidebitcoins.com is not a financial advisor. Do your own research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

About AzeezMustaph

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Azeez Mustapha is a technical analyst, has many years of trading experience in the stock exchange and the crypto markets. He has broad experience in Forex trading, coaching, and funds management