EOS/USDT: Awaiting Confirmation on the Weekly 1W (Jul. 30)

X Force Global Analysis:


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In this analysis, we explore EOS' weekly chart in order to determine significant zones of resistance and to confirmations that provide weight to the narrative of a bullish rally.

Analysis

- To begin with, we can notice that we are currently testing the descending trend line resistance
- This trend line has been valid for over a year, and a break and close above the resistance is necessary for bullish confirmation
- We also have strong historical resistance around the 4.94 USDT level
- Counting Elliott Waves , we could see a potential Impulse Wave (12345) in play, leading up to the 0.786 Fibonacci retracement resistance at 7.12 USDT
- However, we are trading below the Ichimoku Cloud , which has been acting as strong resistance for a while
- Nevertheless, the Relative Strength Index ( RSI ) is at neutral levels, forming higher lows and higher highs
- The Moving Average Convergence Divergence ( MACD ) has formed a golden cross, but seems to lack the bullish momentum necessary for a breakout.

What We Believe

We believe that once we break and close above the descending trend line resistance, a clear confirmation would be provided for a major bullish rally in play.

Let us know what you think in the comment section below


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