The EOS breakout is finally here. And it's not what the bulls were waiting for. After the massive gains towards the all-time-high level of $23 in April, EOS got trapped in a triangle chart pattern as the bullish momentum slowed down.
This was just at the time when EOS dev team announced via Steemit that they are planning on establishing fair block production voting. We were waiting as the calm before the storm passes, but weren't sure which direction the market will push the cryptocurrency.
EOS/USD Technical Analysis
On Saturday, it became evident that the bears have won the battle as EOS/USD confirmed the break below the triangle. It tested as low as the 61% Fibonacci retracement level of $12.16 before correcting a bit.
On Ichimoku Kinko Hyo's daily setup, the Tenkan line is just about to cross below the Kijun line.
If the bearish sentiment keeps up throughout the weekend, we could see a touchdown of the 78% Fibonacci retracement level of $9.49 before the bulls restore power.
Investing Strategy
With this, if you're an investor who believes in EOS's technology, you might consider the current price an ideal opportunity to buy.
Despite the recent selloff, EOS has maintained its spot as the 5th largest cryptocurrency by market cap, trailing behind Bitcoin Cash, Ripple, Ethereum and Bitcoin.
Coming up for EOS.IO is their global hackathon starting June 2018.
As the 4th point of the IDDA technique, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio.
