- EOS dipped into bearishness after reversing from its eleven-month trend-line resistance.
- The token’s latest reversal comprised a massive surge in its Binance funding rates.
The latest bearish cross on the 20 Exponential Moving Average and the 50EMA emerged after EOS noted a patterned breakdown. The emerging decline welcomed a spot beneath the POC (point of control). Nevertheless, the support at $1 triggered buying momentum and some green candles within the past few days.
Any reversal from massive resistances around the Point of Control might put EOS into its bearishness before revivals. While publishing this content, EOS changed hands at $1.139.
EOS Printed Reversal Pattern; Can Sellers Re-Join the Market
EOS witnessed a double-top break that renewed the bearish tendencies from the trend-line resistance. Meanwhile, this trend-line resistance has limited buying efforts for more than eleven months. Following a solid bullish run, the double-top pattern formed the base for bears to dominate the charts.
Moreover, the decline from high liquidity territory around the Point of Control pushed the Exponential Moving Averages to more southward tendencies. The ongoing reversal (from $1) might secure bounce-back grounds from the Point of Control around $1.18. A 180 from this area would place the alt for a short-term downside.
In such a scenario, buyers should watch for a possible baseline $0.99 retest before a potential revival. An immediate hike beyond the 50-Exponential Moving Average and the Point of Control would cancel the bearish cues.
The VO (Volume Oscillator) could not propel higher highs amid its bearish divergence with EOS’s price action. That heightened the chances of reversals from the Point of Control level.
Development Activity Decline & Improved Funding Rates
Santiment’s analysis discovered a substantial decline in EOS’s development activity following a sharp increase. Surprisingly, this uptick correlated with notable surges in Binance finding rates within the previous few weeks.
Meanwhile, the price action sustained lower highs. A similar move by the price would see EOS annulling its short-term bearish inclinations. However, buyers should watch for potential entry triggers, as highlighted above. Also, they can assess broad market cues for informed decisions.
Stay tuned for the latest cryptocurrency updates.