EOS Market Analysis for 22nd January 2021

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Over the past two months, EOS has faced tough resistance from the $3.6 area. Help amounts of $2.7 and $2.4 have been checked several times. Apart from the instability of EOS, the broader picture appeared to display a double-top formation of $3.6. If the price is not consolidated at the $2.4 stage over the next few days, the prospects of EOS recovery will be small. More downside could be seen, perhaps as low as $2.1.

EOS 12-hour chart

As mentioned earlier, the $3.6 mark has repulsed attempts by the bulls to push the price up on the charts. Over the past two months, the $2.5-2.7 range has been of interest, and EOS has once again made its way to this region, finding shelter from selling distress, in press time.

The $2.7 mark could be retested as a resistance in the coming days. The OBV revealed that the second week of January saw huge sales volume as the price fell from its $3.6-high. Since then, although the purchase amount has been creeping up, it has been more or less comparable in the last few days.

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After measuring it as a resistance, the RSI moved under 50 again, suggesting that a downtrend was in place. The most recent trading session saw a $2.44 price visit and a quick increase to $2.61.

Attached maps, in white, outlined the route for EOS, should the inverted scallop pattern be played out. A decline back to $2.5 can be anticipated, and a likely sideways trade before a further drop to $2.3 can be expected. A move under $2.55 will validate the trend, and a short position could be joined, with a target of $2.3.

Invalidation of this route will be EOS moving down over $2.72.

Conclusion

There was also a potential scallop design, one that might see EOS falling to $2.3. Invalidation of this trend would be a trading session close to $2.7, although affirmation of this pattern will be a trading session close to $2.55.

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