EOS’s drop under £3.00 provided the sellers with sufficient momentum to inflict a breakdown below £0.83. Up until recently, the cryptocurrency had difficulty holding a position above the near-term EMAs.
EOS saw two rectangles and discovered newer lows on its chart during this period. The investors could extend their buying spree during the coming sessions thanks to the recent bullish break above the EMAs. EOS was trading at £1.2 at the time of wrting, up 7.7% over the past 24 hours.
The buying activity was muted for about three months by the 20 EMA. EOS experienced a mid-June rectangle bottom breakdown that rekindled the bearish tendencies as the selling pressure increased.
The altcoin stopped selling and transitioned into low volatility over the past month with the Point of Control (POC) in the £0.77-zone. Additionally, the 20 EMA finally withstood a southbound push. The likelihood of a near-term recovery would be confirmed by any bullish crossover on the near-term EMAs.
In the coming sessions, the price action could see a reversal from the £1.00 level. However, a recovery above its EMAs can enable buyers to hold their upper hand. Potential rebounds in this scenario can aim to test the £1.17-zone before a certain fallout. A sluggish phase above the POC could set in due to any bullish invalidation.
As it got closer to the overbought territory, the RSI showed a strong comeback. The buying efforts may experience a short-term setback if there is a reversal from this level.
The CMFs indicated a substantial buying preference on daily timeframe. However, its most recent lower highs have exhibited bearish divergence with the price. Therefore, there would likely be a slow period before a solid recovery. The directional trend on the ADX remained a little bit weak.
Even though the indications had a small bullish slant, the altcoin can experience near-term gains. This rebound, however, could be hindered by the risks associated with the overbought RSI and the bearish divergence on CMF. The previously discussed possible targets would continue to exist.