Like and subscribe😍 EOSUSDT is the 16th largest Altcoin according to Coinmarketcap, but yet EOSUSDT has been on a downtrend since 2018. While most other major altcoins are having a good pump in 2021, EOSUSDT seems to be just sitting right there in a range, even after seeing some good volume increase there was no clear price movement. But right now a strong buy signal is finally flashing on EOSUSDT, which show that the current $1.8 to $2 support could be the bulls kitchen where they are getting ready to explode to the upside this January.
Current pattern discovered on Daily chart : Rectangle Pattern
The rectangle pattern shows that price respects a clearly defined support and resistance, it is a chart pattern formed when price is contained or bounded by support and resistance thereby forming a range or a consolidation zone.
But what does this rectangle pattern represents?
The rectangle pattern shows a clear indecision period between buyers and sellers, here the battles is a tough one as buyers and sellers take different turns to punch each other but yet not one of them has successfully beaten the other to it. This back and forth between buyers and sellers results in price testing the same support and resisitance countless times before breakout.
Considering this rectangle, for breakout to occur, Supply and Demand principle need to play out. The wyckoff spring pattern is a good illustration of how this works out, it describes a similar situation that could work its way out on EOSUSDT, this is called the Spring. I won't be going into full details to explain the Wyckoff strategy but here is a brief explanation of what to expect off this Spring currently about to play out on EOSUSDT.
The Structure and the supply-demand relationships expressed in price action, the waves and volume are what tell us about the likely next market move. Not chart patterns. A spring is a price move below the support level of a trading range that quickly reverses and moves back into the range.(you can call this a typical Bear trap) this is because the drop below support appears to signal resumption of the downtrend but In reality, it's the opposite, the drop only marks the end of the downtrend, thereby “trapping” the late sellers, or bears. Remember that the extent of supply, or the strength of the sellers, can be judged by the depth of the price move to new lows and the relative level of volume on that penetration.
We could see this Stop loss hunt taking place in EOSUSDT before the Major run occur. we could see strong buy buy by the bulls at the bottom below the rectangle.
If this spring plays out, EOSUSDT is likely to see a measured move to the upside with clear target of First TA: $6 to $6.5. as first TA(Mid- Term) Second TA: $18 (this is for long Term )
I don't think it will go below $2 there's many people waiting for it, I have seen like 10 analysis here in trading view pointing the same. Be careful to not be left behind