EOSUSD Long-term Trend – Bullish
- The cryptocurrency may keep its momentum until it reaches its 14-day SMA, but if it is broken it may turn EOS down headed to its 50-day SMA.
- The bulls may however build up their position around the 14-day SMA.
- Distribution territories: $5, $5.50, $6
- Accumulation territories: $3, $2.50, $2
On March 27, EOS’ value suddenly went up against that of the US dollar, and the move has seen it steadily increase. The cryptocurrency is currently trading over the $4 mark, after coming from a range between the $4 and $3.5 marks.
EOS Chart by TradingView
Its 14-day SMA was defining the upper limits of its range while the 50-day SMA was defining the lower limits. The Stochastic Oscillators recently dipped into the overbought zone, which could be an indication the bullish movements are starting to turn into consolidation.
The cryptocurrency may keep its momentum until it reaches its 14-day SMA, but if it is broken it may turn EOS down headed to its 50-day SMA. The bulls may however build up their position around the 14-day SMA.
1- Do not invest in every ICO – most of them are a scam.
2- Crypto is a heavily manipulated commodity and the price can change at any moment.
3- The creation cost of a coin represents the “wholesale” price – It is always better to buy when the price is close to the creation cost.
4- Crypto has a natural cash flow that dictates the selling pressure. Like, 1800 bitcoins are mine each day so 1800 bitcoin must be bought at the current price (“means market needs new $18 millions of investment every day if the price is $10,000 to maintain the current price“).
5- Patience and timing are key to making a profit:
Buy, when the price is close to the creation cost.
Sell, when the price is way high off the creation cost.