EOS/USDT: Corrective Elliott Waves 1H (Jul. 29)

X Force Global Analysis:


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In this analysis, we zoom out from our previous analysis to assess the temporarily bearish probable cases for EOS.

Bullish Evidence

- To begin with, the Simple Moving Averages (SMA) are all aligned in the order of: 20SMA, 50SMA, and 100SMA
- This not only indicates strong support but also strong bullish momentum
- Prices are forming higher lows and higher highs
- The Relative Strength Index (RSI) is at neutral levels
- Prices are trading above the Ichimoku cloud support, as an indicator of bullishness and strong support

Bearish Evidence

- However, we have spotted a textbook bearish divergence, with higher highs on the price and lower highs on the RSI
- The Moving Average Convergence Divergence (MACD) is about to form a death cross, as it shows weakened momentum with smaller bullish histograms
- Counting Elliott Waves, the Elliott Impulse Wave count (12345) is over, as we look for either a corrective wave in play or waves for consolidation
- While there is a clear uptrend, the fact that the trend is going parabolic can be quite worrisome.

What We Believe

In summary, EOS has had a good rally, and is temporarily looking for a correction at the moment. However, as there are a plethora of technical evidence indicating potentiality for bullish scenarios as well, further confirmation would be required for a complete bearish trend reversal.

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