The highs and lows in the digital currency market affected a whole lot of digital currencies. Recently, some of them have started showing signs of gradual recovery. EOS wasn’t left out in this trend, as it broke to the upside of its consolidation pattern, and it might show a quick pullback before it continues the climb.
EOS Price Technical Analysis
The 100-day simple moving average is over the longer-term 200-day simple moving average to indicate that the path of least resistance is moving to the upside. In a nutshell, the upward trend is more likely to continue than to reverse.
The 100-day simple moving average is in line with the 50 percent Fib retracement level to increase its strength as probable support while the 61.8 percent Fibonacci retracement level is in line with the 200-day simple moving average. This is also within the former resistance close to the $12.5 level or area of interest.
Relative Strength Index
The relative strength index is moving downward to indicate that bearish pressure is in control. Stochastic is also moving downwards so EOS might join the trend, but the oscillator is gradually approaching the oversold levels also.
Going back up could draw the attention of buyers and even allow the 38.2 percent Fib retracement level to hold as support. If this happens, the value of EOS could go back to the swing high or create new highs.
Factors Affecting the Market
The value of the digital currency surged higher after the release of version 1.0 of their open-source blockchain protocol – EOSIO. Nevertheless, they said that the release doesn’t guarantee that the EOSIO software will function as intended or will be completely free of bugs, faulty codes, or errors.
The value of EOS also gained support from the news that Block.one has partnered with SVK Crypto – a blockchain investment company – to launch a $50,000,000 fund for EOSIO ecosystem development.