EOS price weekly analysis 6 July: A couple of large gains between periods of steady prices
The bear market of June has, for now, given way to market bulls with EOS showing strong gains this week.
- EOS follows the market as prices recover.
- Gains of almost 13% have punctuated periods of consolidation.
- The next resistance level is $9.00 as EOS has a strong week.
EOS is up about 13% on the back of a solid week. A series of rapid gains have been followed by periods of consolidation. For example, a jump on Monday from around $8.00 to almost $9.00 was followed by several days of trading in a relatively narrow band between $8.80 and $9.00.
We then saw the lower limit of $8.40 tested before the market spoke, driving the price back up over $9.00 before settling at just under $9.00.
Traders came out during those periods when the price remained relatively stable. 24-hour volumes peaked at over $1.3 billion and dipped as low as $566 million.
Those periods of consolidation, where EOS traded in a relatively narrow band are indicative that the bears, who have dragged prices down over recent weeks, are losing control of the market. Their downward pressure is being met by resistance as traders stop the price from falling further.
Support for EOS is holding at the $8.40 level with $9.00 proving to be the upper resistance level.
Smartereum says, "Getting to $9 dollars and crossing this point now looks farfetched for EOS. If the cryptocurrency is able to break the resistance and trade as high as $9, the path may be open for more gains and the price may go as high as $9.32 all the way to $10."
That observation is typical of what we've seen over the last year or so with many different cryptocurrencies. When the bulls are exerting more influence over the market, we see upper resistance levels tested. When one is breached, such as the $9.00 level we're seeing tested with EOS, faster and more substantial gains follow. But when market bears have the upper hand, they test lower support levels and we see large, fast falls.
For much of June, we saw support levels challenged and broken as values fell quickly. But July seems to have brought the bulls out and resistance levels are needing to be tested and breached.
Disclosure: At the time of writing, the author holds BTC, EOS, ETH, XLM, ETN, LTC, ADA and XRP.