The EOS market appeared to be improving after a rough week that saw the price fall to a 5-day low of $4.72. Key indicators have re-established their bullish positions and forecast further gains in the coming sessions.
Certain resistance levels pose a few risks, and a potential double top formation would entice short sellers. Buyers, on the other hand, should be able to overcome such challenges with relative ease. At the time of writing, EOS was trading at $5.50, up 4.5 percent in the previous 24 hours.
4-Hour EOS Chart
Before we get into the 4-hour chart, it’s worth noting that EOS traded above some key moving averages on the daily and weekly charts. The presence of the 20, 50, and 200 Simple Moving Average lines below the candles on the larger timeframes indicated that EOS had established a favorable long-term narrative.
In terms of its near-term trajectory, EOS recovered above its short-to-medium term SMAs as buyers re-entered the market between $4.7-$4.8, pulling the price back from recent lows. Immediate resistance lies between $5.56 and $5.95, a zone from which a rise to the 5 June swing high of $6.2 is expected.
In the event of a reversal, support found anywhere above $4.7 would help keep the bullish narrative alive. Short sellers, on the other hand, may initiate drawdowns if EOS forms another peak at $5.95 and fails to close at higher levels. This will result in the formation of a double top.
The Relative Strength Index reached higher peaks and traded above 60, indicating the presence of an active uptrend. The Awesome Oscillator recovered above the half-line as well, indicating a buy signal.
After a key crossover on August 19, the Directional Movement Index also validated a favorable outcome. This was accompanied by EOS rising above its moving averages.
At press time, EOS had shunned its bearish signals, and the near-term outlook appeared favorable. In the best-case scenario, a price close to or above $6.2 is to be expected. This would imply an 11% increase from the press time level.
Short sellers, on the other hand, would be interested if EOS fails to rise above $5.94.