Wilst the EOS blockchain may be in disarray and confusion, it is still possible to make potential gains from trading EOS on the exchanges and it is always best to keep up to date with crpytos experiencing mass exposure.So here is my take on recent EOS developments that I believe need to be noted:
A: Double peak and RSI link
Both of the price peaks marked A are quite similar and as a result it would be expected to be similarly over/undersold however here it is not the case. With similar price levels and a falling RSI, it indicates a shift in what is considered to be oversold. A shifting level of overbought could indicate underlying moment and could show a potential bullish future for EOS.
B: Double bottom RSI
Although a single bottom RSI indicated overselling and shows a future bull run is possible, it is largely ineffective as an investment tool when solitary. However, a double bottom (or extra-overselling) is a huge indicator for a future bull run and is extra effective when in longer term charts. As can be shown this chart is a 4 hour chart therefore any double bottoming should be taken very seriously, although other factors can indicate this massively so RSI is best used in conjunction with other factors.
C: Parabola and MACD momentum
Higher highs with MACD indicate sustained momentum and during C this is shown in the parabolica formation shown. However, as is usual with the parabolica formation (see my other blog posts for examples) there has been a counter reaction, with falling prices and a loss of MACD momentum. Whilst this could be seen as a negative and could mean a prolonged downtrend however most likely it could be the reason for the recent decline and could show that the double bottom shown in B could be the end of this drop.
D: Touching of bollinger band
For longer term investments this is 100% the worst indicator to use but can be reasonably decent for day trading. A touch of the bollinger band usually invokes either a negative movement of the bollinger with price tracing or a rebound for the band and a positive price increase. Given the previous 3 points, it could reasonably be presumed that the latter is more likely, so there is a possibility of decent short term gains.