All of cryptocurrency markets enjoyed a spell of bullish momentum. With bitcoin inching ahead further, it seems likely that altcoins will begin losing value.
When looking at the 30-minute charts, that trend is already becoming apparent in most cases. The EOS price seems prone to undergoing a correction of sorts.
EOS Price Momentum Turns Bearish
After every bullish run, there comes a period of market pressure and consolidation. This is often apparent across most cryptocurrency trading markets. When looking at the EOS price, that bearish trend and consolidation is seemingly bound to kick in fairly soon.
The push from $2.45 to $2.8 has made a lot of traders good money. Some even dared to hold until $2.84. Such steep gains were more than welcome after the disappointing year 2019. As the hourly EOS price chart turns bearish again, it seems likely that a small retrace will occur.
How low that price will go, is difficult to predict. A drop to $2.71 or slightly lower is certainly possible. The current EOS price momentum already shows a lot of people are willing to let go of their holdings. Buying back in lower is a commonly used tactic among traders.
EOS/USDT Technical Indicators
Bollinger Bands: One of the most commonly used price chart indicators are Bollinger Bands. They indicate how the liquidity of any market is evolving. In the case of EOS, there is a widening of the bands, triggered by the current bearish trend.
What is rather interesting is how there isn’t too much volume being “dumped”. The widened Bollinger Bands have been in place since a few hours, thus it is possible the current level acts as a consolidation point. It will all come down to how the EOS price responds in correlation to bitcoin.
Moving Averages: Following the bullish crossing of the MA20 and MA50 a few days ago, the momentum seemingly has run its course. Both MA lines are close to converging again. If the MA20 drops below the MA50, the bearish EOS price trend may remain in place for a bit. Even so, the momentum is probably short-lived.
It is interesting to note that the MA200 is still moving up gradually in the 30-minute chart. When zooming out, however, the slope is still on the decline. It seems unlikely that EOS will hit $5 anytime soon, but one never knows what the future may hold.
RSI: As far as the RSI is concerned, perspective is everything. On the daily candle chart, the RSI still continues a bullish uptrend. When zooming in, there is a clearly bearish trend, indicating this dip could be short-lived.
EOS was in overbought territory for a little while and is now seemingly paying the price. The previous dip lasted roughly a day and a half. History may very well repeat itself in this regard.