EOS is currently consolidating with the support zone I pointed out yesterday. This coin has a tendency to move sideways for awhile before making large moves. There are a couple possibilities here. Let me start with the more bearish scenario.
Looking at the hourly chart, there's a possible bear flag that's formed.
Obviously EOS has dropped, but it's possible it's moved into a more bearish down trend. The strength of the drop from $17.60 to $13.60 was very impulsive. If we assume it was an impulse wave, the strength of it would suggest a wave 3. According to elliot wave theory, wave 3 is often the strongest of the 5 waves. Coincidentally, that would also match up with the chart. We could count this as having completed 3 waves down and currently waiting for wave 4 to finish. If this is correct, we have wave 5 to follow. Using fibonacci retracement, a logical target for wave 5 is $11.46....which would be the 1.0 fib level. It may look something like this:
Now for the bullish count...
Zooming out to the 4 hour chart, we can see a slightly different way to count the prior impulse waves up. It is possible that there were only 3 waves completed and that drop to $13.60 was the completion of wave 4. Lending credibility to this is the fact that wave 4 in this scenario bounced perfectly off the 0.618 fibonacci level (aka golden ratio).
If this is a valid count, a logical target for the larger wave 5 would be $28.83...which is the 1.0 fib level. I've included the sub-waves to the larger 5th wave in pink. It may play out like this:
Here's a closer look on the hourly chart:
Looking at the 1 hour MACD, it looks like it's slightly up-ticking, but also moving sideways.
As I started off saying, EOS has a tendency to consolidate for awhile before making it's next move. We may be in for a consolidation period that could look like this:
Let's keep an eye on the current zone it's consolidating in between $14.50 and $15.30. If it breaks out and up, we can expect the bullish scenario. Should it break down, the bearish scenario may be in play.
BIAS:
Short Term: Neutral
Longterm: Bullish
I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Thanks for stopping by. I wish you great success!
If you found this post informative, please:
Disclaimer: I am NOT a financial advisor and this is NOT financial advice. Please always do your own research and invest responsibly.
If you don’t have an account on Binance, I STRONGLY recommend getting one. They’re usually the first to get reputable coins, have excellent security and second to none customer service. You can sign up here for free: https://www.binance.com/?ref=16878853
Hi @workin2005,
Your post "EOS Drops! Has it hit bottom?" hast just been Resteemed !!! 😻🙃😻
You have Earned this service by following me.
🙃😝🙃 Be ENGASED to continue with this FREE Restreem service @tow-heed😉😉😉
great analyis, thank you.
Thank you @darko-l
I concur with the bullish scenario. It fits with the launch sequence, the bullish sentiment in the overall market, and new accumulation taking place. While I can't underestimate the shorts, I think there's enough FOMO in the market to support higher pricing and a breakout in keeping with the launch sequence.
That would have been nice. Unfortunately, it took the bearish path. EOS has a bright future though. It needed this correction after such an amazing run.
Good info .... thanks
Thanks for stopping by @tastetwist
Hello. Eos touched .15 and BTC is going up. It means that EOS will go back to .17, right? Do you agree ? OR your chart is still valid and EOS will go down to $11 (.12) ?
I think the 5th wave down is now complete. I've not studied the chart yet this morning...but I wouldn't be surprised if we saw consolidation today.