EOS Price Analysis – 25th February 2023

This EOS Price Analysis – 14th January 2023, is hosted by BNC’s Josh Olszewicz.

First things first, follow or copy our publicly traded fund on Enzyme
https://app.enzyme.finance/fund/0xded69068a94776a23f5bdafc6b4c6894bc88e82c/overview

Now to the technical stuff.

On the daily chart for EOS/USD, the 50-day and 200-day Exponential Moving Average (EMA) bullishly crossed on February 1st. The Volume Profile of the Visible Range shows support at US$2.75 and resistance at US$3.70 and US$5.50. Yearly pivots also show resistance at US$4.93 and US$7.26. Additionally, there are no bullish or bearish divergences on volume or RSI at this time.

Bitfinex open interest is currently 99% long, with long interest increasing over the past month and short interest slightly increasing over the same time period (top panel, chart below). The June 2019 reduction in short interest mirrors a reduction in short interest on Bitfinex for BTC on the same day. A significant price movement downwards will result in an exaggerated move as the long positions begin to unwind. This is known as a “long squeeze”.

The current spot price appears to have invalidated a bearish Pitchfork (PF) with anchor points in December 2017, and March and April 2018. Price has resided in the upper half of the PF since March 2019. The spot price has exceeded the upper diagonal of PF for 54 days, likely invalidating the nearly 1,000-day downtrend.

Turning to the Ichimoku Cloud, four metrics are used to determine if a trend exists; the current price in relation to the Cloud, the color of the Cloud (red for bearish, green for bullish), the Tenkan (T) and Kijun (K) cross, and the Lagging Span. The best entry always occurs when most of the signals flip from bearish to bullish, or vice versa.

Three-day Cloud metrics, with doubled settings (20/60/120/30), for more accurate signals, are bullish; the spot price is above the Cloud, the Cloud is bullish, the TK cross is bullish, and the Lagging Span is above the Cloud and above the current spot price. The trend will remain bullish so long as the spot price remains below the Cloud, currently at US$3.15.

Both the EOS/BTC and EOS/ETH pairs show strong bearish trend metrics with prices at or near all-time lows. A remote possibility for both pairs is a mean reversion to the respective 200-day moving averages, but even more likely, consolidation at current lows or bearish continuation. AOn Bitfinex, EOS/BTC open interest remains 77% short.

EOS Price Analysis – 25th February 2023

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