EOS was previously consolidating inside a symmetrical triangle pattern visible on the 4-hour time frame and has recently broken to the upside. This suggests that long-term gains are likely in the cards.

The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, the climb is more likely to gain traction than to reverse. The gap between the moving averages is widening to reflect increased bullish momentum while the 100 SMA lines up with the top of the triangle to add to its strength as a floor in the event of a correction.

RSI is pointing up but already in the overbought zone to signal that bullish exhaustion is in play. Turning lower could mean that buyers are allowing sellers to take over, likely resulting in a dip from profit-taking.

Similarly stochastic has reached the overbought zone to indicate that buyers are tired and that sellers could take over from here. Still, the chart pattern spans 1.5000 to around 3.0000 so the climb could last by that same height.

EOS is up by more than 20% over the past 24 hours, leading some to worry that this might just be a pump-and-dump move. Others think that the surge might have been from Block.one CEO Brendan Blumer who addressed some of the EOS community concerns on social media.

He tweeted:

Great things take time; parallel teams need to be built to deliver new products without sacrificing the progress of existing business units, and that means hiring new people which comes with time limitations that can’t always be shortcut with capital.

Furthermore, Blumer said that Block.one is currently working with a “leading hardware manufacturer” to deliver greater security for all EOS wallets and EOS assets, spurring speculations that it could be closing in on an official iOS wallet for Apple devices soon.

Images courtesy of TradingView