EOS is up more than 20% over the past 24 hours and has skyrocketed to the fourth top position in terms of market cap. This could draw more investor interest that might sustain the rebound.
On the daily chart, however, the downtrend is still pretty clear and EOS has a lot of ground to cover before reversing from this. The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside or that the selloff is more likely to resume than to reverse.
The 100 SMA dynamic inflection point is also around the 50% Fib at 3.8134 which might hold as near-term resistance. The 61.8% Fib is close to a descending trend line connecting the highs since August. If sellers return at any of these points or the former support zone closer to 4.8479, EOS could slump back to the swing low.
RSI is still heading north though, so the price could follow suit while buyers have control. This oscillator has a lot of room to cover before indicating overbought conditions anyway. Stochastic is also heading higher to signal that bullish momentum is in play and could stay for a while until overbought conditions are seen.
Anticipation for the long-planned referendum system for EOS is being pinned as the catalyst for the rally. Apart from that, news that EOS will be added to Coinbase also drove up bullish sentiment. The exchange noted:
As we announced in September, Coinbase’s goal is to offer support for all assets that meet our standards and are fully compliant with local law. Over time, we intend to offer our customers access to greater than 90% of all compliant digital assets by market cap.
It has since overtaken Tether and Stellar in cryptocurrency rankings by market cap and might even be poised for more upside, depending on whether or not investors sustain this sentiment.
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