Eugen ChumThu, Apr 22, 2021 1:52 PM
Orbuculum: EOS Price Analysis and Prediction for Q2 2021
EOS is a cryptocurrency with a high level of centralization: there are only 21 nodes in its network, and the miners are nominated by the project itself. It is also highly probable that some of those nodes belong to the EOS cryptocurrency founder. The scarcity of nodes makes the EOS blockchain fast and efficient, and its capitalization has been in the top 20 list of cryptocurrency by market cap most of the time of the project’s existence. As of writing time, EOS occupies the 20th position with $7.6 billion worth of market cap.
In this price prediction, we are going to analyse the EOS/USD recent price development and produce an EOS coin price prediction for the end of Q2 2021. For this analysis, we have used the Bitfinex EOS/USD pricing.
EOS Price Analysis
From November 24th, 2020 until January 27th, 2021 EOS/USD was locked in sideways motion between two technical levels: the weekly support level at 2.3954 and the daily resistance level at 3.6739.
An ascent that eventually took the trading pair above the daily resistance at 3.6739 began on January 28th, 2021. On January 30th, 2021, EOS/USD faced the daily resistance level at 3.0064, a slight retraction followed. The pair managed to stabilize above the level on February 1st. The pair continued trending sideways, continuously keeping above 3.0064, and resumed bullish EOS coin price action on February 5th.
From there on, the pair had rapidly climbed to 5.5625 on February 13th, slicing through the weekly resistance level of 4.9084 along the way. Surprisingly, there was no special EOS crypto news on the media at the time. So, the upswing can be accounted for purely technical reasons.
EOS/USD on the daily timeframe chart
Afterwards, a sizeable retracement took place. The pair went down to the level of the 3.6714 daily support level and was temporarily driven below it. It was the 50-day SMA on February 28th that supported the cross rate and ignited a local rebound that saw the pair stabilise above the 3.6714 support level.
Another period of short-range sideways fluctuation followed that and was going from March 2nd to March 29th. During that time, EOS/USD was mainly kept between two daily levels: a level of support at 3.6714 and a level of resistance at 4.1958. It thus could be considered upside progress from January as the pair had managed to solidify its position above 3.6714. And another phase of upside price action on March 30th after EOS coin price had closed above 4.1958 on March 29th.
By the end of the trading day of April 2nd, EOS/USD had been above 6. And after a transient retracement, the growth continued, topping the $7 mark several times between April 5th and April 7th. On April 14th, EOS/USD tested the weekly resistance level of 7.6308, closing the day at 7.6619. It was the first time since June 2019 that EOS/USD had risen so highly. Eventually, the upturn continued for a couple more days, and EOS/USD closed April 16th at 8.5031. But a sharp downside reversal began on the next day, April 17th, and the pair slipped to the $6 – $7 range on Sunday, April 18th, on the back of a notable landslide across the entire cryptocurrency market.
EOS/USD on the daily-timeframe chart
EOS Price Prediction for Q2 2021
Looking into the end of the second quarter of 2021, we are mainly focussing on the EOS/USD chart, since not much EOS coin news is coming out. The 7.63 weekly level may appear a considerable hurdle in the near future. Also, if EOS/USD closes below 6.5 on the daily timeframe, it will be a downside reversal of the presently going uptrend. Also, the 20-day SMA can be insightful for signaling close term development of the EOS crypto price. If the pair capitalises below the 20 day SMA, it will open up the prospects of further downside price action.
Considering this opportunity and the current downside retracement, we see the lower support levels as good entry points for buying entry orders. Particularly, the 4.9084 weekly level and the two daily levels at 4.1958 and 3.6714 are good ones to consider. Also, the 50-day SMA should be reckoned with as a major support factor. In case the EOS/USD trading pair keeps the downward course, the 50-day SMA could help reverse the price upwards off one of the major support levels between 4.9 and 3.67. The suggested take profit level would then be at the 7.6308 as it can offer considerable profits and a reasonable level of risk.
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