The price of EOS has taken a hit like any other altcoin in the market. However, the collapse in the price of EOS has been a blessing in disguise. In fact, its price soon returned to its crucial support level. A rebound from this level could hold the promise of a 150% rise in the long term.
At the time of going to press, most of the EOS metrics were neutral. This suggests that it could go both ways. However, one important indicator suggested that it may, in fact, rebound from the aforementioned support level.
3-day EOS chart
The EOS 3-day chart noted a 28% drop, after which it managed to rebound to support at $ 2.466. Even during the crash on December 23, 2020, EOS closed above that support level. It gives more credit at this level. Therefore, it seemed likely that the price will rebound from this level and rise.
Overall, EOS appeared to be moving back into the downlink parallel channel. Therefore, the uptrend will need to include not just a rebound from the support level. But also a break in the resistance of overheads.
The RSI indicator noted a decline towards the neutral zone. However, it looked promising as a rebound was already evolving from this level.
Unlike the RSI, the MACD indicator registered a bearish cross. This suggests that the short-term outlook for EOS may be picked up by the bears. The same has been observed with the Stochastic RSI, at the time of writing.
A positive aspect to this is that the breakout of the chain will, in theory, lead to a bullish push. Taking advantage of this, a long position would be the best way to go.
Levels to watch
Admission: $ 2.7227
Stop-Loss: $ 1.9287
Cash in: $ 7.7948
Note that this is a long term setup. Things tend to change more often in the short term. Additionally, Bitcoin’s dominance in the crypto market has produced an inherent correlation with almost all altcoins. Therefore, this configuration may be affected by the decline in Bitcoin.
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