EOS has been consolidating in a clear Equilibrium pattern for over a week now. The Stochastic RSI on the Daily has reached a bottom and momentum is ready to reverse. Additionally, the Daily RSI level has touched the previous strong support level of 58 and held (Steve and Pauline Youtube channel does a great analysis on this).
With the upcoming EOS Airdrops, EOS main-net launch, and general positive & anticipatory sentiment, I see EOS making a major break soon.
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EOS broke the EQ pattern bearish. I see this move in direct correlation with BTC price action.
I will be adding dollar-cost-averaging into my EOS long position at these prices as I believe it has tremendous upside potential.
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One thing I didn't take into account when I made this analysis was the fact that EOSs market cap was after the last run-up was very high - it ran from 4bn to 18bn in one month. That is insane.
The market cap has now pulled back to 11bn. For reference, ETH is 68.6bn and XRP is the next highest at 26.7bn.
IMO, XRP is a shitcoin. So if EOS is able to provide true value (the way we think it will) in the crypto space, I would project the market cap reaching north of 30bn at some point this year. This would project the price somewhere in the $40-$50 range.
I completely agree with the conclusion you've set forth. The red outlined triangle formation you show appears to be a symmetrical triangle not a bull flag, and some might call it a bear pennant. If you include the wicks that have pierced that upper boundary, today's green candle was stopped right at the resistance line defining the upper triangle boundary. I have the same triangle and it extends to the 16th of May.
BitInfo12
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@Jrdelane, Thanks for the input. I agree with the upper wicks. I perhaps drew the upper trend line a bit early. If I could, I would adjust it to include the upper wicks and this would extend the timeline projection of when the break is to occur. Thanks again!
sshkrv
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so, is it a bull signal? :) when to buy?
BitInfo12
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@sshkrv, Trading is all about probabilities and the market has the ability to go up or down at any moment. I believe that EOS has a higher probability of making a Bull break based on the evidence I have outlined (Stoch RSI, RSI, chart pattern). However, we're currently in a wait and see mode. When a clear break and direction is confirmed, then probabilities will increase in either direction and it will be a better time to make your buy/sell decision.
Make sure you're behind your computer, with eyes on the charts, and your order ready to go! The market makes its moves on its own time, not yours.