EOS is still stuck inside a short-term range, but the support area turns out much more significant when viewed on a longer-term time frame. Price is also trending higher on the daily chart and currently testing the ascending trend line that’s been holding since October last year.
With that, a break below the range bottom and trend line could mark the start of a longer-term downtrend. This could take EOS down to the next horizontal area of interest at 4.2300.
The 100 SMA crossed below the longer-term 200 SMA on this chart to suggest that the path of least resistance is to the downside. This means that selling pressure is picking up and that support is more likely to break than to hold.
RSI is pointing down to confirm that selling pressure is in play and EOS could follow suit. Similarly stochastic is also heading south to show that sellers have the upper hand. Then again, both oscillators are approaching oversold levels to signal exhaustion among sellers. Turning back up could bring buyers in and lead to a bounce, possibly until the short-term range top at 9.2000.
Altcoins like EOS have been under selling pressure these days owing to a number of factors, though. First is the HitBTC outage which spurred fears of another security issue, underscoring the news that South Korean officials are looking to remove tax breaks on crypto exchanges. This comes after rapidly rising volumes and activity led them to question whether or not security measures are enough to guard against money laundering and financing illegal activities.
After that, Nobel Prize-winning economist Paul Krugman had some negative things to say about cryptocurrencies, citing that he doesn’t see the need for these to be introduced into the financial system and replace the current one. Meanwhile the dollar has stayed strongly supported throughout thanks to strong Fed tightening hopes and safe-haven flows.
