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

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