EOS Analysis – Flag points south

Last technical piece of the day will be EOS, so a crypto, which was previously mentioned here on the 29^th of November. Back in that day, the price was around 3.17 USD and we were very bearish. Our view was backed up by a strong technical situation and the fact that EOS was showing a great respect to the price action principles. This is what we wrote back then:

“On Tuesday, EOS made new long-term lows and it does not look good. The sell signal remains strong and is on the table as long as the price stays below the green line. „

The price was in a freefall till the 7^th of December, when we reached the local bottom on the 1.57 USD. That is around 50% drop in value, so I guess you can call the previous analysis a spot on one. Since the 7^th of December, we do have a small correction, which is shaped like a flag (green). Technically, the flag should result with a breakout to the downside and a further slide. In my opinion, that is the most probable scenario at the moment. The sell signal will be denied, when the price will break the purple horizontal resistance but chances for that are very limited.