The underperforming EOS I have had my eye on for a long time and the behaviour of the price is lining up a potential huge upside.
In my opinion EOS has been in an accumulation phase since December 2018 and is on the verge of breaking out significantly with supply in strong hands.
I am a student of Wyckoff methodology and I love the principle of effort and result which can be seen very nicely with the two squares I have made on the chart (red and green).
Lets start with the square in red
* Hits 5.50 and is overcome by supply volume
* Demand is no where to be seen and price collapses very quickly
* Breaks through key level of 4.80 with increased volume and spread.
* A classic tee-pee formation of bearish quality
By using logic alone we see supply was just to strong with very weak demand. Notice there is some demand on the way up but supply is presented to the market with the increased volume at the top resulting in a mighty fall which culminates in the March low.
Now, the green square
* Hits 5.50 and reacts BUT supply is absorbed.
* Massive increases in Volume. Supply is present here but demand is stronger.
* Demand is supporting price in a way not seen before from this price level.
* Two quick price moves above 4.80 - 1st price move fell below but demand came in quickly and supply dissipated. 2nd time we have support (at the moment - need to wait and see)
What I see is an accumulation in strong hands by the massive increase in effort with little to no meaningful result to the downside. When supply is fully absorbed a small volume will result in a large jump and hence I believe the potential for the coin is huge.
My game plan
* Find support above 4.80 in a minor re-accumulation with a continued move to 8.0 as a sign of strength. We break 8.0 level and 20.0+ is on the cards.
In my opinion EOS has been in an accumulation phase since December 2018 and is on the verge of breaking out significantly with supply in strong hands.
I am a student of Wyckoff methodology and I love the principle of effort and result which can be seen very nicely with the two squares I have made on the chart (red and green).
Lets start with the square in red
* Hits 5.50 and is overcome by supply volume
* Demand is no where to be seen and price collapses very quickly
* Breaks through key level of 4.80 with increased volume and spread.
* A classic tee-pee formation of bearish quality
By using logic alone we see supply was just to strong with very weak demand. Notice there is some demand on the way up but supply is presented to the market with the increased volume at the top resulting in a mighty fall which culminates in the March low.
Now, the green square
* Hits 5.50 and reacts BUT supply is absorbed.
* Massive increases in Volume. Supply is present here but demand is stronger.
* Demand is supporting price in a way not seen before from this price level.
* Two quick price moves above 4.80 - 1st price move fell below but demand came in quickly and supply dissipated. 2nd time we have support (at the moment - need to wait and see)
What I see is an accumulation in strong hands by the massive increase in effort with little to no meaningful result to the downside. When supply is fully absorbed a small volume will result in a large jump and hence I believe the potential for the coin is huge.
My game plan
* Find support above 4.80 in a minor re-accumulation with a continued move to 8.0 as a sign of strength. We break 8.0 level and 20.0+ is on the cards.