EOS Eyes Bull Reversal After 70 Percent Spike

The EOS token is surging this week, possibly on the back of positive news flow.

Having clocked a two-week high of $7.34 earlier today, the token is now changing hands at $6.68 – up 7.7  percent for the last 24 hours, as per CoinMarketCap. Notably, EOS is also up 70 percent from the low of $3.95 seen on Sunday. The token now ranks seventh on the list of the top cryptocurrencies by market capitalization.

It is worth noting that EOS is the only cryptocurrency reporting gains over the last day. Bitcoin (BTC), is down 4 percent on a 24-hour basis. Coins like ether, XRP and cardano are down 6-9 percent.

The positive price actions may be driven by joint venture news and rumors of exchange listings, according to online discussions.

Block.one, the developer behind the leading blockchain software EOS.io, yesterday announced a $100 million joint venture with German fintech incubator FinLab AG to develop projects that use the EOS blockchain. Further, talk is flying around that EOS will be listed on Upbit – one of the biggest cryptocurrency exchange in South Korea.

And, last but not least, trading volume has risen by a staggering 189 percent since March 18, signaling the cryptocurrency will likely continue gaining altitude in the near future.

The technical charts, too, are largely positive, and indicate that EOS may be looking at a bullish trend reversal soon.

Daily chart

The above chart (prices as per Bitfinex) shows:

  • EOS is struggling to beat the falling channel hurdle.
  • The 5-day moving average (MA) and the 10-day MA are trending north, indicating short-term bullish setup.
  • The 50-day MA and 100-day MA bearish crossover favors the bears.

View

  • A minor pullback to $5.50 is likely, given the intraday overbought conditions.
  • A convincing upside break of the falling channel would signal a bearish-to-bullish trend change and negate the bearish 50-day MA and 100-day MA crossover. In this scenario, EOS will likely test the immediate resistance located at $12.50 (Dec. 19 high).
  • Only a daily close (as per UTC) below $5.16 (March 9 low) would abort the bullish vie and open doors for a re-test of $$3.87 (March 18 low).

Hot air balloon image via Shutterstock

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