EOSUSD Price: Formation of Short “W” Pattern Indicates Strong Bullish Movement

EOSUSD Price: Formation of Short “W” Pattern Indicates Strong Bullish Movement

Price Analysis – November 06

The increase in the bulls’ pressure to break up the two dynamic resistance level will place the price at the $2.7 level, further increase of the bulls’ pressure may allow the price to test the $2.9 and $3.3 resistance level. Failure to break up the dynamic resistance level may lead to bearish movement continuation, the price will encounter barriers at $2.4, $2.2, and $1.7 support level.

Key Levels:

Resistance levels: $2.7, $2.9, $3.3

Support levels: $2.4, $2.2, $1.7

EOS/USD Long-term Trend: Bullish

Cryptocurrency is on the bullish movement. The coin was range-bound within the resistance level at $2.7 and support level at $2.4 last two weeks. The ranging persists until November 03 when the bears gained more pressure to break down the support level of $2.4 and the price dropped to the $2.2 support level. The Bulls interrupts the price declination with the formation of the Morning star candle pattern. This is an indication that the Bulls are ready to take over the market soon. Following the bullish candle pattern is the formation of a daily bullish candle and this is penetrating the dynamic resistance level at the moment.

EOSUSD daily chart, November 06

The two EMAs are separated and the price is trading in between the 9 periods EMA and 21 periods EMA with a bullish candle, which indicates a gradual increase in the bulls’ momentum. The increase in the bulls’ pressure to break up the two dynamic resistance level will place the price at the $2.7 level, further increase of the bulls’ pressure may allow the price to test the $2.9 and $3.3 resistance level. Failure to break up the dynamic resistance level may lead to bearish movement continuation, the price will encounter barriers at $2.4, $2.2, and $1.7 support level.

EOS/USD Price Medium-term Trend: Bullish

EOSUSD is bullish in the medium term. The coin bottomed at the $2.2 support level on November 03, the bulls defends the level and thus prevents the breakdown of the $2.2 support level. The buyers move into the market with an increase in pressure and the price incline towards the resistance level of $2.7 after it breaks up the $2.4 level.

EOSUSD 4 hour chart, November 06

The 9 periods EMA has crossed the 21 periods EMA upside with the price trading above the two EMA; this connotes an increase in the bulls’ momentum. The relative strength index period 14 is above 50 levels pointing upside to indicate a buy signal.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.