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EOS Dip Buying Opportunity with Bullish EOS Price Projection

Steve Miley trader
Updated 12 Dec 2022

The EOS cryptocurrency price has dipped since the weekend but has shown solid gains in early December and since the early November lows was posted. The Q4 gains have highlighted at least a short-term base and sets up a more positive price forecast for the end of 2022 and into early 2023.

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EOS Setback After Small Base

A succession of higher highs and higher lows has been put in place by the EOS/USD cryptocurrency since the bear market low was established at 78.95 in early November, just below the prior cycle low established in June at 81.51. The rebound from this more recent low highlights a tentative defence of the previous trough and sets up a prospect for a more sustainable short- and intermediate-term basing for year-end and on into next year.

Source: IG.com

The solid and gradual gains over the past 4-5 weeks have highlighted a willingness to build at least a short-term recovery theme and reject the more bearish activity seen in the early November sell-off down from 121.81 to 78.95, driven by the contagion threats from the collapse of FTX.

The latter November rally up to 98.67 through the acceleration point at 96.09 was a first short-term bull signal and has been reinforced subsequently by the extension up to 106.69, setting up a better base and the prospect for a more positive view on an intermediate-term basis. The setback from this weekend into Monday is seen as corrective and offers bulls an opportunity to enter longs on this dip.

Upside Threats for EOS

The immediate bias is for a rebound to retest the recent swing high at 106.69. Above here would open up the threat for a move to 121.81 and 123.45/125.91 chart targets into year-end and early 2023.

Through here, the Q1 2023 threat is still higher, towards 138.24 and even 149.00/ 150.34

EOS/USD Downside Risk

A deeper setback below 91.78 would open up threats to challenge 82.58 and even to re-examine the bear cycle low at 78.95.

EOS Explainer

EOS is a cryptocurrency based on a blockchain and a decentralised platform used to run, develop and host business applications. It was launched with a $4.1 billion coin offering in 2018 by the private company block.one. The open-source software called EOS.IO is used on the platform and cryptocurrency tokens, EOS, are used as a payment system on the network. Learn more about buying EOS in our How To Buy Altcoins guide.

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YOUR CAPITAL IS AT RISK. 68% OF RETAIL CFD ACCOUNTS LOSE MONEY


YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Steve has 29 years of financial market experience including 3 years at Credit Suisse and 15 years at Merril Lynch. Steve is the Academic Dean for The London School of Wealth Management and has won many awards from Technical Analyst Magazine.