Singapore – The EOS volume indicator in March pointed towards a strong selling pressure, leading to a possible range formation between $0.46 to $0.64.
Despite a 5.4% gain within 24 hours, EOS struggled to surpass the $0.64 resistance level, hinting at a potential range formation for the cryptocurrency. Traders were advised to be cautious of short-term volatility in the market.
Throughout March, EOS tested the $0.64 resistance level three times, with previous attempts resulting in quick drops to $0.55 or $0.45. The Awesome Oscillator signaled a momentum shift in the 1-day timeframe by climbing above the zero mark; however, the Capital Movement Index (CMF) remained well below -0.05, indicating significant capital outflows and seller dominance in the market.
The Long/Short Ratio chart revealed that long positions accounted for 51.4% of the taker volume, reminiscent of a similar scenario on March 18th when EOS experienced a significant drop from $0.67 to $0.56. With the possibility of a bearish reversal looming, traders were advised to exercise caution, especially around the $0.64-$0.66 range.
The 3-month liquidation heatmap suggested that the $0.66-$0.69 range could act as a magnet for prices to move higher. Despite the lack of buying pressure on the 1-day chart and the potential bearish reversal, traders were encouraged to be wary of going long, holding out for a potential opportunity to sell around the $0.64-$0.66 range.
In conclusion, traders were cautioned about potential price fluctuations and advised to stay vigilant in their trading decisions amidst the prevailing market conditions for EOS. No financial advice was provided in the article, and all opinions expressed were solely those of the writer.