130 Interactions, 2 Today
The wider cryptocurrency market has been extremely weak over the past few days. The same, perhaps, can be said for the likes of EOS, BAT, & Zcash too. All three alts formed extremely bearish chart patterns and appeared to be in for some difficult days ahead, at press time.
The prices of all these cryptos had breached crucial support zones, with no signs of recovery yet.
For the past few months, EOS has been trading within a very narrow range, as indicated by the yellow lines. It has always found support near $3, but has met stiff resistance near $6. A descending triangle pattern (marked in white) also appeared on the chart, with the price breaking down below the pattern’s critical support level of $4.3. This pointed to significant weakness in the near term.
Even the indicators for this altcoin have moved in lockstep with the downward trend. The Relative Strength Index has also been showing decreasing strength at higher levels, with the same reading at 43 at press time.
Even the MACD had breached into negative territory under the zero line, putting more pressure on the sell side. The price also significantly broke down below the 20-day Moving Average (green), indicating further bearishness.
Basic Attention Token (BAT)
Basic Attention Token (BAT) has also been trading in a range for a long time. It found solid support near $0.45 but encountered stiff resistance between $0.95 and $1. From the looks of things, it will continue to trade within the range. It was in a downtrend at the time of writing, but it will find support at $0.45 again. There will be no significant bullish actions unless the price breaks out above $1.
With a reading of 45, the Relative Strength Index wasn’t too bad.
The MACD indicator, on the other hand, had dropped significantly and had breached the zero line. This would increase selling pressure. The price also broke down below the 20-day Moving Average over two weeks ago, with the same unable to retest those levels yet.
The ZEC/USD currency pair, like BAT, has been trading within a range for the past few months. It has been on a downward trend since September 7, 2021. In addition, the price formed a descending triangle pattern, which was broken three days ago.
This would put more selling pressure on the price, and the next level of support, as indicated by the yellow trendlines, would be around $80. On the upside, $177 would act as a resistance level.
The Relative Strength Index had recovered from levels below 40 at the time of writing, while the MACD indicator had breached the negative territory under the zero line. Both of these reflected a strong bearish sentiment towards Zcash.
The price was also below the 20-day Moving Average, which would act as immediate resistance.