A notable setback for the business-focused cryptocurrency EOS over the past 24 hours, but we see this as a correction of the strong rally that has been seen across cryptocurrency markets to start 2023. This leaves the January and Q1 prospects for further upside and below we look at the bullish forecast for EOS.
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EOS Setback Viewed as Corrective
Having probed about the downtrend line from August 2022 back in mid-December late last year, a more forceful reversal by EOS through this resistance barrier to begin 2023 also saw a closure of the late December bear gap, but more significantly over the past week a push above the Dow Theory swing high from December at 106.69.
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This bullish intermediate-term technical signal points to further upside prospects for January and for the first quarter, despite the setback seen on Wednesday. The price erosion yesterday managed to hold and bounce from just above the up trend line that comes from the very last trading day of 2022 and from a notable impulse support level at 93.19, off of 93.23. Whilst above 93.23/19 and the trend line we see near-term bullish forces as intact, and see risks skewed back higher in both the short- and intermediate-term.
Upside Prospects for EOS
We see the skewed risks for an EOS recovery after Wednesday’s sell off, seen as corrective in nature whilst holding above the aforementioned trend line from the end of 2022 and the 93.23/19 support area. Initially, we would target a move into the second half of January back up to the recently set recovery high at 109.46. Through here would aim still higher into mid-Q1, closer to targets at 121.81 and 123.45/ 125.91. The overshoot threat for the first quarter is potentially as high as 138.24, even the 149.000/ 150.34 target zone.
EOS Downside Risks
However, a forceful break below the 93.23/19 support area would signal a deeper correction lower for EOS into the second half of January. The initial target would be 88.05, which we would look to try to then hold. However, surrender here would open the door to a deeper move lower for swing low supports clustered at 84.44/ 83.15/ 82.58, and even for a challenge to the November bear market low at 78.95.
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