The EOS / US Dollar (EOS / USD) pair rebounded to its low of $ 4,1778 on August 14, 2018. At that price level, the market was down more than 80% from its peak in 2018 of $ 23,029.
Many retail investors will not touch an altcoin that has lost so much in four months. However, the charts tell us that we could be at the point of maximum financial opportunity. This means that at this point the risks are minimal but the premiums are high.
Technical analysis shows that EOS interrupted the large fall wedge on the daily chart. In fact, the breakout is yesterday's news. What is relevant at the moment is how the market is using the previous resistance as a support.
Yesterday, 6 September 2018, EOS fell to a minimum of $ 4,8365, but then the bulls arrived to lift the market. As a result, we have obtained a bullish pin bar that is on top of the new support. Furthermore, the RSI uses the previous resistance of 40 as a new medium. This tells us that the bulls are extending their territory. More importantly, we could see the development of lower upside configurations.
The strategy is to buy as close as possible to the $ 4.80 support. If the bulls keep the market above this level, they will attract the momentum needed to reach the $ 7.56 target.
The process may take a month.
Daily chart of EOS / US Dollar on Bitfinex
At the time of writing this article, the EOS / US Dollar pair is trading at $ 5,0222 on Bitfinex .
Buy: Declining as close as possible to $ 4.80 support.
Objective: $ 7,56
Stop: $ 4,50
Disclaimer: The writer has bitcoins, Ethereum and other cryptocurrencies. It holds investment positions in the currencies, but does not carry out short-term or day trading activities.
Featured image courtesy of Shutterstock.