EOS Coin Could Massively Outperform the Bitcoin in the Long Run

EOS Coin Could Massively Outperform the Bitcoin in the Long Run

Published: April 20th, 2020

Today we’ll observe EOS coin, which is ranked #9 on the Coin Market Cap with a total capitalization of $2,302,037,105. This will be a long term outlook, rather than a short term price scenario. Therefore, expect strong volatility prior to the potential uptrend, which is expected in this analysis.

Weekly chart

EOS/BTC Weekly Technical Analysis 20 Apr 2020

Starting with a Weekly chart, we can see several important factors, which might initiate an uptrend in the very near future. First is the clear rejection of the 88.6% Fibonacci retracement level at 0.00349 BTC in June 2019. Then the price attempted to move lower, although there was no break and close below this level taking into consideration all the spikes. Secondly is the rejection of the 8/1 Gann Fan trendline just several weeks ago. The rejection was very clean, which could result in the beginning of an uptrend, if not broken. And the third one is the Fibonacci cycles. We can see that in March 2020 a new cycle has started, and this was exactly when the Gann Fan trendline was cleanly rejected.

Daily chart

EOS/BTC Daily Technical Analysis 20 Apr 2020

On the Daily chart, EOS/BTC broke above the downtrend trendline, although afterwards there was a very strong correctional move down. Nevertheless, the price remained above the trendline, where it consistently found support throughout the past months. We can also see that price just recently rejected the uptrend trendline, which might be the signal of a trend reversal. As long as price stays above 0.00035, with no daily close below this level, EOS/BTC is highly likely to produce a strong move up. There are two major targets confirmed by 2 Fibonacci retracement levels for each resistance. First is at 0.0006370 BTC, which is 76.4% Fibs as per the weekly chart and 38.2% Fibs as per the Daily chart. Second is the 0.0009770 BTC, which is 61.8% Fibs as per the Weekly chart and 78.6% Fibs as per the daily chart.

6-Hour chart

EOS/BTC 6-Hour Technical Analysis 20 Apr 2020

On the 6-hour chart, we can witness the break above the descending channel. Similarly to the Daily chart, the price has found support on the upper channel trendline after the breakout. Price has broken above the 23.6% Fibs retracement at 0.0003673 BTC and currently forming the support area near this price. Therefore, we might see more range trading around this price for the time being, simply because it is a long term price analysis. We can see the spike below the support, where price tested 0.0003600 BTC low. This level should be monitored for the potential close below on the 6-hour chart. Because this might trigger further short term decline, although will not invalidate a long term bullish outlook.

3-Hour chart

EOS/BTC 3-Hour Technical Analysis 20 Apr 2020

The 3-hour chart shows that still, there is not enough bull power for the massive growth which is expected in our analysis. There is a strong resistance formed at 0.0003771 BTC, and the price is struggling to break higher. A spike above this resistance was made, hitting 0.0003850 BTC high, although it failed to close above. On the other hand, the 200 Exponential Moving Average is rejected along with the uptrend trendline. This means that for now, price is still consolidating and strong confirmation of the uptrend could be 3-hour candle break and close above the 0.0003850 BTC level.

1-Hour chart

EOS/BTC 1-Hour Technical Analysis 20 Apr 2020

Finally, the 1-hour chart, which shows the price remains above the uptrend trendline and what is more important is break and close above the downtrend trendline. These are good indications that price is getting ready for a strong move, potentially to the upside, as long as 0.0003600 BTC support is holding. Because this level now plays a key role in the short term price action. Keep in mind, that break below this support is likely to invalidate the bullish scenario.

Summary

The long term price action is becoming more and more bullish. Although considering that this is a long term outlook, the price can consolidate further. But at the same time, considering all the bounces off the support levels as well as trendline, impulsive wave up could be just around the corner.

Upside targets

As per the Daily and Weekly chart, there are two key resistance levels which can be used for the upside target. First is the area between 0.0006370 and 0.0006551 BTC and second is at 0.0009772 BTC.

Probability of a downtrend

The lowest spike produced below the 88.6% Fibonacci support is at 0.0003040 BTC. This is now a key support level, where price could potentially return. But only break and close below this level will completely invalidate the bullish scenario and can send EOS/BTC down to 0.0000850 BTC level, which seems to be highly unlikely at this point in time.

Support: 0.00035300, 0.0003040

Resistance: 0.0006340, 0.0009772

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