The fierce struggle in the EOS market does not subside for a minute. On one hand, if you look at the previous analysis, which we published on 10 December, there is a little sign of the coin life. The price level and the trading situation are identical. Consolidation in the EOS market has been continuing since March 2020.
Buyers were unable to fix above the global trend line
However, if you look closely at last week’s candle, it becomes clear that the market was one step closer to success. Although, something went wrong. During the last EOS trading week, an abnormally high volume was recorded. It equates to the volume of the infamous March flow.
Despite the great strength, buyers still failed to fix above the global trend line, which sellers have been keeping since May 2019. The repeated test of the mark $3.9 sets new limits of consolidation. If before the break of the global trend line was considered something extraordinary, now its credibility is partially undermined. As a result, a new consolidation range emerges. If everything is clear with the upper limit of $3.9, then the lower limit remains in question:
The chart shows a new initiative of buyers to continue the EOS growth and not allow price to fall below the critical range of $2.4-$2.5. Although the daily candles on 10 and 11 January look threatening, buyers managed to absorb all the “negative volume” in this range. As a result, on 12 January, sellers retreated completely exhausted. Therefore, the range of $2.4-$2.5 is quite suitable for the role of a lower limit of consolidation.
The alternative scenario of the EOS price movement
Nevertheless, so far buyers have not shown active action and aggressive buyout, as can be seen for example in XLM. The continued BTC price fall will force buyers to retreat and expect a better fate at around $2. In this case, consolidation in the EOS market may continue until May 2021.