EOS price struggles for momentum, but the uptrend stays intact

Summary:

Although the EOS price is not exactly flying high, it has been inching upwards for a month. Nonetheless, the coin is sliding down the crypto peching order.

Although the EOS price is not exactly flying high, it has been inching upwards for a month. Nonetheless, the coin is sliding down the crypto peching order. For the most part, the EOS coin has largely ignored the second cryptocurrency bull run of 2021. Even though the price has gained 65% to $5.29, coincidentally, it’s still 65% below May’s $15.21 high.

Considering altcoins as a whole have surged recently, with many like Solana’s SOL Token (SOL/USD) making new highs, EOS (EOS/USD)has massively underperformed. This may be surprising considering the platform’s advances. In May, Block.one, who developed EOS, announced it had secured several high-profile investors for a new Decentralized Finance (DeFi) exchange called Bullish. The revelation that investors, including Peter Thiel, hedge fund titans Alan Howard and Louis Bacon and crypto Billionaire Mike Novogratz had jumped on board the project helped EOS climb 550% in the first five months of the year. However, since then, it has been all downhill. By the end of July, the coin was changing hands at $3.13 and desperately in need of a bullish catalyst.

The recent broad-based crypto rally has seen a bid return to the price. However, the coin has been overlooked in favour of rivals. As a result, EOS has slid down the rankings and is currently the 33rd-largest cryptocurrency behind PancakSwape (CAKE/USD).

However, there are some encouraging signs that although a return to May’s euphoria is unlikely, the price should continue to track higher.

EOS/USD Technical Analysis

The daily chart shows the EOS price has been trending higher in a rising channel since late July. The major moving averages reinforce the $4.74 support at the lower end of the channel. The 50-day at $4.82, the 100 at $4.85 and the 200 DMA at $4.78, combined with the trend, create robust confluent support.

As long as EOS remains above $4.78, the bullish trend is intact and should lead to a test of the top edge of the channel at $6.75. Clearance of $6.75 would be an encouraging development for the bulls, potentially triggering an extension to the 25th of May high at $7.78.

But this bullish scenario is only valid if EOS sustains $4.78. A close below this level flips the outlook sharply bearish and likely a return to the July trough.