$4.50 next upside target: EOS technical analysis
14:30, 29 January 2020
EOS has been enjoying strong buying interest lately, with the cryptocurrency oncourse to close the month above the $4.00 level.
EOS technical analysis shows that the cryptocurrency could start to target towards the $4.50 level.
EOS/USD medium-term price trend
EOS technical analysis shows that the cryptocurrency is trading above its key 200-day moving average, and is technically bullish while trading above the $3.30 level.
The recent rally in the altcoin space has seen EOS going from strength-to-strength, with the cryptocurrency now appearing increasingly comfortable above the $4.00 level.
The daily time frame shows that the $4.50 level remains the likely medium-term upside target before a meaningful pullback in the cryptocurrency.
However, if the EOS/USD pair break above key trendline resistance, the cryptocurrency could surge towards the $5.50 level.
Looking more closely at the rising trendline on the daily time frame, it has shaped the direction of the EOS/USD pair since August 2019.
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EOS/USD short-term price trend
EOS/USD analysis shows that the cryptocurrency is technically bullish over the short-term while price trades above the $3.15 level.
The EOS/USD pair has recently formed a large inverted head and shoulders pattern, which could see the cryptocurrency rally towards the $5.50 level.
The neckline of the bullish pattern is currently located around the $3.55 level, and suggests further short-term gains for the EOS/USD pair.
A rally towards the $4.30 level would also help to shape an even larger inverted head and shoulders pattern.
Another scenario to consider over the short-term would be a rally towards the $4.30 to $4.40 technical region, and then a strong technical pullback.
With these factors in mind, traders should carefully watch the developments above the $4.00 level over the coming days.
EOS/USD technical summary
EOS/USD technical analysis suggests that an upcoming rally towards the $4.40 to $4.50 technical region may be on the horizon.
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