EOS Market Update Report & Technical Analysis-May 8

EOS Market Update Report & Technical Analysis-May 8
 

The Rise of EOS – Market Update May 8

The real revelation of the year in the cryptocurrencies world is undoubtedly represented by EOS. After reaching the low of 3.90 on March 18th, EOS literally took off and closed last Friday over the historical top of January 2018 at 23 Usd.

EOS was born in 2017 and is based on a new kind of blockchain that supports large transactions volumes per second and does not include commissions. It resembles Ethereum in part, and it offers the chance of producing smart contracts, but also to Ripple as it allows transactions between different currencies without going through the Dollar. With a powerful rise that has almost multiplied by six the price in just over a month, EOS is currently the fifth cryptocurrency in the world for capitalization before Litecoin and Cardano.

The rise of EOS

 

 

Among the main cryptocurrencies, EOS is practically the only one to have recovered (and even exceeded) the historical top, denying those who still celebrate the burst of the speculative bubble on cryptocurrencies.

Now that the historical tops have been reached, traders are asking themselves what to do. In these cases there are two strategies: the trader can enter on the strength (hence the resistance break) or he can wait for a corrective return move towards the previous resistance which is now a support.

In the first hypothesis, the best entry moment is already the current one.

The January historical top has reached a closing price of 16 (so the bullish break was formalized) and the return of prices on the 10-day moving average currently in transit at 16.90 seems to offer a good long entry opportunity.

The ADX trend seems to be in favor of a new attempt to return at least to 23. This indicator measures the strength of the trend and has reached a very high level above 50 points. In December it rose even higher but before witnessing the trend reversal on EOS prices, ADX began to show a divergence with decreasing lows. This condition is not currently realized at a graphical level.

Those who want to have higher potential profit margins can consider waiting for the return of EOS prices in the price range between 12 and 14, where the 50% and the 61.8% of the Fibonacci retracements of wave 3 are positioned. As for the Elliott wave theory, wave 4 hardly falls beyond two-thirds of the same wave 3.

In the lower section of the graph, we have reported the relative strength ratio between Bitcoin and EOS. At the beginning of 2018, 1737 EOS were needed to buy 1 Bitcoin, now only 569 are needed, a good test of strength for this emerging cryptocurrency.

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