EOS, the ICO coin that raised over $4 Billion, experienced a month of declining prices during the month of May, both against BTC and the US Dollar.
During the past month, EOS/BTC had suffered downward pressure of up-to 43% from its high set on the 29th of April, at a handle of 0.00243862 (243K SATS), to a low of 0.00138390 (138K SATS), created by this months low set on the 23rd of May. The pair has currently, at the time of writing, rebounded and has recovered almost 23% of this negative move.
Similarly, EOS/USD had suffered downward pressure of up-to 54% from its high set on the 29th of April, at a handle of $23.02, to a low of $10.33, created by this months low on the 24th of May. The pair, at the time of writing, is trading hands at a price of $11.81, recovering around 10% from this months low.
Long Term
EOS/BTC
https://www.tradingview.com/x/AAh41qb7/
From a long term perspective, we can see that EOS has continued to make significant gains against BTC. The pair started the year trading at a price of 0.00055673 (55K SATS) and is currently trading over 185% higher at 0.00161400 161K SATS.
On further examination of the chart, during the month of May, we can see that EOS had retraced to the .50 Fibonacci Retracement level, located at 148K SATS. This is a .50 retracement of the previous bullish swing, starting at a price of 51K SATS on the 18th of Feb, to the yearly high set on the 29th of April, at a price of 243K SATS.
Price is currently fluctuating between the .382 and .50 Fibonacci Retracement levels as the market wait to see the outcome of the upcoming MainNet launch with subsequent developments.
For the uptrend to continue, price action would need to make an attempt and break through the yearly high set at 243K. If price manages to venture above this level, then we could expect prices to reach between the 295K SATS – 360K SATS region.
Alternatively, if the momentum from the MainNet proves to be disappointing then price may head lower toward the .618 Fibonacci level at a price of 125K SATS.
EOS/USD
https://www.tradingview.com/x/CPWsnmUR/
EOS/USD is also experiencing similar market movements to that of EOS/BTC. The year opened trading with a price of $7 and the pair is currently trading at a price of $11.70. We can see that the pair had a significant bull run during the months of March and April, however, during this previous month price has significantly declined, falling from the highs of $23 set in April.
If the EOS/USD pair manages to break and close above the previous high of $23, then we may expect the price of EOS to trade at a higher price and possible reach the region between $28-$31.
Near Term
EOS/BTC
https://www.tradingview.com/x/U0dWyqXV/
From a near term perspective, looking at the 4-hr charts above, we can see that EOS/BTC has been trading between the ranges of .382 and .50 Fibonacci Retracement located between 170K SATS and 148K SATS respectively.
If price action were to clean break and close above the upper .382 boundary of the range, then we could expect price to make an attempt to battle with near-term resistance located at 200K SATS. Once this price is overcome then price action has a clear route to make attempts for fresh all time highs.
Alternatively, if the market fails to hold above the .50 Fibonacci Retracement, we could see price action head toward near-term support located around 138K SATS.
EOS/USD
https://www.tradingview.com/x/pWEX4TDz/
Looking at the EOS/USD on the 4-hr chart, we can see that the market has fallen far from the highs set last month at a price of around $22.
Over the past few days price has been trading within a range-bound market between $11.17-$13.42. With the past few days of development slip-ups the market is keenly waiting for the MainNet launch before deciding on its next direction. If the market was to break above the $13.42 handle then we may expect price action to then head toward previous resistance marked by $17.
Alternatively, if the hype from the MainNet launch is poor, then we could expect price to break below $11 and head toward the $9.40 region.
Conclusion
Just like with any traditional markets, it is not ideal to trade when an upcoming major fundamental decision/event is taking place. It is always best to just sit on the sidelines and wait for the market to decide on which way it would like to head toward next.
With the upcoming MainNet launch in a couple of days we may see some signs of excitement brewing within the market.
