By CCN.com: The EOS fireworks are just getting started. The commonly touted fundamental factors are June’s Block.one event in Washington and the purchase of 3.3 million tokens worth of RAM described as pushing the price up. There are also rumors that a game-changing announcement will be made in June. These developments have certainly helped the cause of this cryptocurrency but these are not the major catalysts driving the price up.
Over the last few weeks, the smart money has shown its hands as EOS continues to move with strong bullish momentum. In this article, there’s a case to be made why EOS is likely to double in value before the year ends. The cryptocurrency is already up 205% so far in 2019.
If you’re a hodler of the cryptocurrency, now is the time to start celebrating. EOS suffered through a long and brutal bear winter that began in April 2018 and effectively ended this month. Yes, the downtrend that lasted for one year and one month appears to finally be over.
In the chart above, you will see how EOS breached resistance of $6.00. This triggered the breakout from a large inverse head-and-shoulders pattern. As you can see, EOS painted this structure for nine months. That’s a lot of time build a base in cryptocurrency trading.
In addition, the technical reversal looks valid considering that EOS is now trading above $8.00. That’s a growth of over 33 percent since the breakout.
With the technical reversal, EOS in is now a buy on dips candidate. We wouldn’t suggest buying the current breakout rally. The cryptocurrency is showing signs of bullish exhaustion on the shorter timeframe.
The best move right now is to wait for this rally to fade. Eventually, those who bought the bottom and the breakout will take profits. The pressure to sell will likely increase every day as the daily RSI flashes overheated signals. It is trading in overbought territory while showing a bearish divergence.
Stay on the sidelines for now and consider entering after the pullback. There’s a very good chance that EOS will retest $6.00 before resuming its uptrend.
EOS remains in a strong uptrend even though we expect a considerable pullback. That bias is valid as long as the market trades above $6.00 which is the neckline of the inverse head-and-shoulders pattern.
Using the height of the pattern for our target price, we can see EOS easily tapping $10.00.
Upon closer inspection, we noticed that $10.00 is not much of a resistance. Therefore, the bullish momentum should carry the market to as high as $12.00 before the end of 2019. This is a conservative target considering that we have half a year to reach that goal.
If you agree with our analysis, wait for the correction and buy as close to $6.00 as possible. If bulls can keep EOS above the neckline, the initial target is $10.00. Take that out and EOS will likely climb to $12.00.
Click here for a real-time EOS price chart.
This article was edited by Samburaj Das for CCN.com. If you see a breach of our Code of Ethics or Rights and Duties of the Editor, or find a factual, spelling, or grammar error, please contact us and we will look at it as soon as possible.
Last modified: May 28, 2019 9:25 AM UTC