EOS/USD Technical Analysis: Gradual recovery from bear’s attack likely

Left bleeding by the bear’s attack yesterday, EOS, the 5th largest cryptocurrency in terms of market cap, saw its price go to a low of $5.260. The bearish trend seemed to continue today till a support of $5.089 when a trend reversal saw the prices gradually increase.

At the time of press, EOS was trading at $5.206, with a market cap of $4.70 billion. The trading price showed a change of -1.76% with a 24-hour trading volume of $617.40 million.

1 hour:

In the one-hour timeframe, a strong downward trend was seen from $5.479 to $5.089 between October 3 and October 12. The trend was further confirmed between October 11 and October 12 when the prices went down from $5.923 to $5.242.

The Awesome Oscillator showed a minor upward drift after the bear’s attack yesterday and points to a slightly bullish trend.

The RSI also shows signs of recovery from a heavily oversold position and could point at a bullish environment after a rough drop yesterday.

1 day:

In the one-day timeframe, a strong downward trend was seen from $7.337 to $4.469 between June 26 and August 13. The drift was confirmed by the downward trend between May 10 and October 11, when prices came rushing down from $17.755 to $5.089.

The accumulation/distribution graph also shows an upward trend, which is an indicator of a bullish trend.

The Chaikin Money Flow chart also shows an upward trend as the market recovers from one of the worst hits this year. As the market recovers from the apparent crash, a bullish trend can be forecast from the chart.

The Fisher Transform Indicator shows the trigger line crossing the Fisher line, showcasing a bearish trend after a deceptive recovery following yesterday’s blitzkrieg by the bear.

Conclusion:

Considering the trends indicated by the Awesome Oscillation and RSI, a bullish price movement can be expected as the market recovers from the yesterday’s setback with a resistance of $5.284. If this is broken, the next resistance will be $5.436.

The Chaikin Money Flow also seconds the bullish trend.

If the prices are to drop as indicated by Fisher Transform Indicator, the support will be at $5.169. If the bearish trend continues, the next support will be at $5.089.