EOS continues consolidating. A breakout may be looming...

EOS has been consolidating for over a week following it’s bull run. There’s an obvious wedge that’s formed as we see lower highs and higher lows. As this gets closer to the apex, a breakout becomes more likely. It may look something like this:

Looking at the 1 hour MACD, you can see the histogram is being squeezed tighter and tighter. This also suggests a breakout may be looming.

There is a chance for a bearish scenario. If we look closely, we can see what could be labeled as a bearish pennant. This, along with the long consolidation, suggests uncertainty in the market. I believe that’s due to the FUD many have about the SEC possibly classifying Ethereum as a security. This would obviously affect EOS and the entire market. That said, I do NOT believe the SEC will label ETH a security. Still, investors have been on edge. Should EOS break down, there’s strong support between $15.00 and $15.60. I want to be clear...this is NOT my primary count, but it is a possibility.

The 1 hour RSI reveals strong support at 29.33 and resistance at 68.19. If the 29.33 support breaks, we can expect the bearish scenario. Likewise, if EOS break through the resistance, we can expect the bullish scenario.

Let’s remember there’s an airdrop tomorrow, May 10th, for all EOS holders. Anyone holding EOS in a wallet where they own the private keys will receive Evolution tokens. The following day on May 11th, is the scheduled EOSIO Dawn 4.0 Release. While many people “buy the rumor and sell the news”, I believe EOS will be held due to the upcoming main-net launch on June 1st, as well as a couple other airdrops scheduled around that time. The truth is, this is uncharted territory. EOS is the first of it’s kind to launch this way. Only time will tell how the market reacts.

BIAS:
Short Term: Neutral to Bullish
Longterm: Bullish

I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Thanks for stopping by. I wish you great success!

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Disclaimer: I am NOT a financial advisor and this is NOT financial advice. Please always do your own research and invest responsibly.

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