As the leading cryptocurrency, Bitcoin held its trading channel on the 22nd of May, and therefore not allowing the market to turn bearish. EOS price followed BTC’s trading trend by exhibiting an uptrend on the 22nd of May. Sharp_As_A_Balde is a TradingView analyst who believes that EOS may look to complete a head and shoulders pattern.
1-Day EOS price analysis (22nd May)
EOS began the trade near the $2.460 level at the start of the 22nd of May. The trading pair’s trajectory can be observed climbing up on the daily chart, while it reached a day’s high of $2.634 near 21:00 GMT. At the same time, the RSI had moved to a high of 88.37, which means that EOS was overbought at that instance. EOS traded at $2.582 at the time of writing.
EOS: head and shoulders pattern?
If the cryptocurrency completes the ongoing head and shoulders pattern, the EOS market will turn bearish and fall towards the support line near $2.10. However, if EOS breaks out of the head and shoulders pattern and retests the $2.91 resistance, the cryptocurrency will see will continue trading with bulls.
The Relative Strength Index (RSI) shown in the idea chart above still appears to be above 30.00. If there’s a bearish convergence for the technical indicator here, the cryptocurrency will see a fall. The cryptocurrency’s movement also depends on BTC’s trend.
Disclaimer: The information provided is not trading advice but an informative analysis of the price movement. Cryptopolitan holds no liability towards any investments based on the information provided on this page.