The EOS price lacks a bullish catalyst and continues to consolidate in a tight trading band between $4.20 and $5.00. EOS (EOS/USD) is trading at $4.72 (+0.19%), up +19.9% so far this month and +80% year-to-date. EOS commands a market cap of just over $4.5b and is ranked the 43rd-largest cryptocurrency ahead of DeFi king Aave (AAVE/USD).
Bitcoin’s ascent to $66,999 encouraged many altcoins to embark on impressive bull runs of their own. As a result, the total value of the cryptocurrency market reached a record $2.75 trillion last week. Unfortunately, the EOS price hardly flinched during that time and is still trading at a 68% discount from its 2021 high. Considering the euphoric return of altcoins, EOS has woefully underperformed recently and whilst many assets have recovered the loss they took in September, EOS is trading around 26% below last month’s peak. Furthermore, Bitcoin has started to roll over and is testing the psychological $60k support level this morning, which, if lost, could be a deciding factor in where EOS heads next.
The daily chart shows that EOS is trading just above the 50, and 100-day moving averages (DMA’s) at $4.55 and $4.63, respectively. However, the 50 DMA has crossed beneath the 100, which signals growing bearish momentum. Furthermore, the 200 DMA at $5.30 looms overhead and provides significant resistance on the way up.
Presently, I see no real opportunity at the current level. In my opinion, the likeliest scenario for the EOS price is a slow bleed sideways to lower. However, a bullish scenario if the price clears the 200 DMA. In that event, a logical target is the September high of $6.42. However, below $4.20 a return to the early-October low at $3.67 should follow. But for now, the probable direction is sideways in the $4.20-$5.00 channel.
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