Disclaimer: The results of the following analysis are the sole opinions of the author and should not be construed as investment advice
EOS re-discovered bullish momentum after its price adjustment in an area of high demand. With price volatility falling after falling nearly 16%, EOS can be expected to switch between its short-term lines of the Simple Moving Average before exploding upward.
The projected swing can be supported by important developments in MACD and RSI, paired with a steady recovery along the Awesome oscillator. At the time of writing, EOS was trading at $ 4.60, up 3.8% over the past 24 hours.
EOS 4-hour chart
With several points of contact since the beginning of September, EOS’s demand zone (white) has responded appropriately to several waves of selling pressure. Although this zone acted as resistance when the bears broke in late September, buyers were able to turn the script around amid a risky broader market.
On the 4-hour chart, EOS is now attempting another bounce out of this zone after weakening a 16% drawdown of $ 5.07. However, the presence of the 50-SMA (yellow) combined with the $ 4.67 resistance provided short-term tailwinds.
Given the weak 24-hour trading volume and the divergent nature of the Bollinger Bands, EOS could stay below the aforementioned confluence in the upcoming sessions.
As traders add more volume, a close above $ 4.67 could trigger a jump towards $ 5.07. This move would represent a further 9% increase from what EOS was at the time of going to press.
The 4-hour MACD saw a bullish crossover yesterday and saw a move above the half-line. Readings like these offer buyers a platform to jump on board. A bullish momentum was also evident on the Awesome Oscillator, steadily recovering from a 3-week low.
However, the RSI showed signs of equilibrium after holding near 50. This indicated that some selling pressure in the market was preventing the RSI from moving further on the chart.
As selling pressure gradually eases, EOS could move sideways between its 20-SMA (red) and 50-SMA (yellow). Once buyers find their legs for a sustained surge above $ 4.67, EOS could make a comeback to $ 5.07.
Those gains could even increase if the broader market continues to see inflows.