EOS (EOS) has been falling since May 12, when it was rejected by a long-term resistance level at $14.8.
The ensuing bounce has been weak, and the token has so far struggled to create any sort of bullish structure.
Long-term EOS rejection
EOS has been moving downwards since reaching a high of $14.86 on May 12. The high was made right at the 0.618 Fib retracement resistance level. The ensuing downward movement has been sharp, and the token reached a low of $3.58 on May 23, which amounted to a fall of 75% in only 11 days.
EOS has recovered slightly since, but has yet to reclaim any important horizontal levels. To the contrary, the $8.5 area was supposed to act as support, but has turned to resistance instead.
In addition to this, technical indicators have turned bearish. The MACD & RSI are decreasing, the latter being below 50. Furthermore, the Stochastic oscillator has just made a bearish cross (red icon).
Therefore, the long-term trend can be considered bearish.
Wave count
Cryptocurrency trader @Mesawine1 outlined an EOS chart, stating that he is looking for a re-test of the $8.50 area for the upcoming upward movement.
The preceding downward movement does look like a five wave bearish impulse (highlighted in red). In that case, the ensuing bounce is likely an A-B-C corrective structure, as outlined in the tweet.
The most likely level for the top to be reached would be near $9.1. This is the 0.5 Fib retracement level when measuring the entire downward movement.
In addition, it is the resistance line of a potential parallel ascending channel, in place since the aforementioned May 23 low.
Afterwards, another downward movement could transpire.
EOS/BTC
Likewise, the EOS/BTC chart shows a similarly bearish outlook.
However, in this case, the token has already completed its bounce and is now in the process of completing the final downward movement. It has been decreasing since May 27, when it was rejected by the 18,880 satoshi resistance area, the 0.5 Fib retracement resistance level.
Technical indicators are bearish, supporting the continuation of the downward movement.
The next closest support area is found at 9,300 satoshis.
For BeInCrypto’s latest bitcoin (BTC) analysis, click here.
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