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EOS – 6h. test of $10 and continuation of the correction? for BINANCE:EOSUSDT by P_S_trade

A fairly promising rise in the price of EOS, which consisted of two powerful waves on May 5 and May 11, began its correction. This correction was our main scenario, which we wrote about in the previous global idea:

As well as under the VETUSDT or TRXUSDT ideas, many positive-minded traders expressed their negative on our corrective forecast. Nevertheless, we publish our thoughts, regardless of whether others like it or not.

In this case, in the EOS market, we have witnessed how short-term the news is working out. As we remember, on May 11, news came out that the Creator of EOS will open its own crypto exchange. For two days, the price of EOS was actively growing and it looked spectacular on large timeframes.

However, if we analyze the growth on the 15 minute timeframe, we see that someone systematically unloaded their positions and left a trail in the form of hairpins up:

Our opinion is confirmed by the following trading days, when buyers were unable to keep the price above the range of $11.5-12. Already on May 13, most of the growth momentum was absorbed by sellers. This fact confirms the opinion that the news can strengthen the trend movement or become a good trigger for the start of a strong movement. However, only when the market is ready for it. Otherwise, the news is rather short-term.

At the moment, the price of EOSUSDT has stopped at the range of $8-8.5. If we analyze the history of EOS trading, we can see that this range was quite important in June 2019:

As you can see, it was after the unsuccessful breakout of this range that the EOS price continued its protracted downward trend. Therefore, we expect an attempt to consolidate buyers above the range of $8-8.5.

The critical point that will decide the next medium-term EOS price movement is at $10. At this point, we will see how strong the buyers are and whether they are capable of continuing to rise to at least $12. A weak local wave of growth will give a strong signal for the continuation of the fall in the price of EOS to the range of $5-6.

Therefore, at the moment we expect:

1. price fixing above $8-8.5

2. Test $10

After meeting these targets, we will create a new short term idea for EOS.

P.S. A negative scenario in the EOS market will be possible if we see a downward breakdown of the consolidation triangle on the EOSBTC chart:

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We create both short-term ideas (for a local understanding of the market situation) and medium-term forecasts of price movements.
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