By the press time, the EOS coin price trades at $1.25, with an intraday gain of 5.45%. With today, long bullish candle the buyers break the monthly resistance of $1.24-$1.22. This breakout supported by strong volume indicates the buyers’ confidence in climbing higher levels. If the daily candle closes above $1.24, interested buyers could find an entry opportunity to rise upcoming. Here are three reasons why EOS prices may witness significant recovery in the coming weeks.

Source-Tradingview

Formation Of Bullish Pattern

The EOS coin price shows the formation of a rounding bottom pattern in the daily time frame chart. The pattern is characterized by a gradual downward price trend followed by a period of stabilization/accumulation and a steady upward trend, resulting in a U-shaped curve.

Currently, the coin price is making a lead from the accumulation zone to the recovery phase, where more buyers could enter with additional confirmation. Thus, under the influence of this pattern, the EOS price should rally 47.5% to hit the neckline resistance of this pattern. 

Thus, the formation of this pattern itself creates a sense of sustained recovery for a coin.

Breakout From A Strong Resistance

Amid the recent recovery in the crypto market, the EOS coin price showed a nearly perpendicular growth in the last five days. This bullish rally registered a 24.4% gain and breached a crucial resistance zone of $1.24-$1.22.

The aforementioned resistance is the neckline barrier of the bullish pattern’s accumulation zone whose breakout could encourage further recovery in the EOS price. Thus, the breakout will signal the transition of the EOS price from a sideways accumulation zone to an upcoming recovery.

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Buyers Reclaimed 200-day EMA

The EOS coin price has shown a significant recovery since the beginning of 2023. This bull run manages to reclaim crucial EMAs(20, 50, 100, and 200) and offer additional confirmation for buyers.

These technical analysis indicators are commonly used in financial markets to track the price movement of an asset. Thus, the rising altcoin price has recently reclaimed the 200-day EMA, which is a common benchmark to identify market trends.

Therefore, the EOS price trading above the 200-day EMA indicates the buyers have an upper hand.

Resistance Levels: $1.388 and $1.6
Support Levels: $1.22 and $1.3

The post 3 Reasons To Buy EOS Coin Before February End appeared first on CoinGape.

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Filed under: News - @ February 18, 2023 2:30 pm