EOSUSD runs into sellers again around 2.61
EOS/US Dollar Index (EOSUSD) Technical Analysis Report for May 24, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EOSUSD ended Sunday at 2.49 losing $0.07 (-2.73%). Trading $0.05 higher after the open, EOS/USD was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Saturday's low at 2.54, EOS confirmed its breakout through the prior session low after trading up to $0.05 below it intraday.
Daily Candlestick Chart (EOSUSD as at May 24, 2020):
Sunday's trading range has been $0.12 (4.69%), that's slightly below the last trading month's daily average range of $0.16. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EOSUSD.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Black Candle showed up on Thursday, EOSUSD actually gained 5.28% on the following trading day.
After having been unable to move above 2.62 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 2.61.
The cryptocurrency shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the nearby swing high at 2.64 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 2.41 where further sell stops could get triggered. As prices are trading close to May's low at 2.28, downside momentum might speed up should EOSUSD mark new lows for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for EOS/USD. Out of 213 times, EOSUSD closed higher 56.34% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 51.64% with an average market move of 2.03%.
With five out of the other six Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are BTCUSD losing -5.09% and BCHUSD closing -4.75% lower. On the flipside the best performer has been ETCUSD closing 0.15% higher. Looking at the Minor Cryptocurrencies, the winners of the day have been ETCBTC surging 5.6% and ETHCNY closing 4.3% higher. The worst performers of the day have been BCNUSD tanking -13.04% and LTCGBP closing -11.46% lower. Read more