EOS fails to boost the investor’s interest because of the stagnation of the blockchain’s growth metrics which is about to change. EOS consolidated within the narrow trading range which was defined by the $3.1 resistance and $2.9 support level so let’s see more about the analysis in our EOS newsletter.
The low levels of volatility forced the Bollinger Bands to get tight on the 4-hour charts indicating that a major price movement is upcoming. Moving past this resistance level could shoot the smart contract token to $4 while breaking below the support which could lead it to $2.3. Even though EOS was dormant most of the time, one technical index estimated that the prices could soon face extreme volatility. The past few months were quite dramatic for EOS holders and most of the cryptocurrencies on the market were able to reach new yearly highs as the smart contract token continued to get a hold of the $3 resistance barrier.
The altcoin increased recently to a high of $3.5 but the crypto market crashed and it went down as EOS fails to hold strong. The co-called Ethereum killer blockchain took a 28% nosedive within 30 minutes dropping to a new low of $2.5 and the prices were immediately able to recover partially and stabilize around the $3 price point. It seems that the EOS cryptocurrency started a new consolidation phase as the Bollinger Bands were forced to squeeze on the 4-hour charts. Squeezes usually show low volatility periods and are usually succeeded by huge price movements. The longer the squeeze, the higher the chances of a strong breakout.
The technical index and growth metrics don’t provide a clear path about the direction of the EOS trend and as a result, the area between the upper and lower bands could become a no-trade zone. Only one candlestick close or below these crucial hurdles will determine where the altcoin will go next. Breaking above this resistance could see a spike in buy orders behind the cryptocurrency and if this happens, EOS could retest the high of $3.5.
While EOS remains flat trading between $3.1 and $2.9, the market participants seem to have forgotten the cryptocurrency as the data from LunarCRUSH showed that the number of EOS-related mentions on social media dropped significantly over the past few months.
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