EOS continues to trade lower beneath a descending trend line visible on the daily and 4-hour time frames. Price just bounced off this resistance and is setting its sights on the next downside targets marked by the Fibonacci extension tool.
The 38.2% extension is below the swing low at 6.3000 and the 50% extension is at 5.3000. Stronger selling pressure could take it down to the 61.8% extension at the 4.3000 area, which lines up with a longer-term horizontal support. Sustained bearish momentum could lead to a drop to the 78.6% extension at 2.8683 or the full extension at 1.0550.
The 100 SMA is still above the 200 SMA, though, so the path of least resistance is to the upside. In other words, there’s still a chance for EOS to make rallies. Then again, the gap between the moving averages is narrowing to reflect slowing bullish momentum.
RSI has been on the move up but is pointing back down to reflect a return in selling pressure. Reaching oversold conditions and turning back up could bring buyers back, though. Stochastic has more room to fall and is heading south without even reaching overbought levels, which means that sellers are eager to return.
Cryptocurrencies are erasing some of their earlier gains on a positive start for the quarter as well-known American economists had some negative remarks on bitcoin.
Joseph Stiglitz, Nouriel Roubini and Kenneth Rogoff focused mostly on the role of governments and regulation in cracking down on cryptocurrency activity and how its price volatility prevents it from becoming a stable store of value.
According to Roubini:
“For bitcoin to be a currency it has to be a unit of account, a means of payment, and a stable store of value. It is none of these. Bitcoin is not even accepted at Bitcoin conferences, and how can something that falls 20% one day and then rises 20% the next be a stable store of value.”