After a long run of green candles, buyers have turned into sellers as EOS enters a selling frenzy. The price action on EOS cryptocurrency was under a positive sentiment until it faced stiff resistance at $5.89 levels forcing EOS to retest its immediate support levels.
However, the slight decline in valuation was seen as a good entry point as buyers took EOS back from $4.70 to $5.70. But it wasn’t enough to stir a positive buying sentiment across the border investors, as everyone started reeling in their profits after EOS has moved over 100% in the last month.
At present, EOS has broken critical levels, which has a strong possibility of creating a fresh selling pressure on this cryptocurrency, further lowering the price to new monthly lows.
EOS Price Analysis
The future looks grim after creating a double top pattern as EOS broke the neckline support zones yesterday. While we are witnessing a fresh pull-back rally. Until EOS managed to close above the $5 levels on hourly charts, the future is sure to be a profit booking scenario.
Over the entire month of August 2021, we have witnessed a steady rise in investor’s thoughts towards making entry into EOS. Another aspect to consider in the long run is the volume. If the volumes made on August 27, 2021, remain lower than the fallen volume of August 26, 2021, it will be another red flag for people habitual of buying the dip.
EOS has strong support at $4.36 levels on chart patterns, followed by $5 only if it manages to close above the levels. Till that happens, $5 will be acting as a strong resistance level followed by $5.89 levels. RSI on daily charts has dropped below 50 on a histogram, indicating a likely scenario of continued profit booking.
The green candle we are witnessing today has likely taken support from its 100-day Moving Average of $4.62. The tussle between making an entry or booking profits should be clear, book partial profits and wait for higher closing. While those searching for buying opportunities should wait for EOS to turn bullish again and hold their itchy fingers till $5.00 levels.
