Analyst: If Popular Altcoin Breaks This Level, Short Selling Starts!

July has been strong for many altcoins so far. While hopes of recovery were instilled in the first week of the month, an increase in selling pressure was seen in the following days. EOS, like other altcoins, saw a drop in price, but low volatility kept its losses in check. At the time of writing, EOS is 0% in the last 24 hours. It was trading at $3.7 with an increase of 1.

Critical levels for the recognized altcoin EOS

The turnaround in late June to early July was favorable for the global cryptocurrency market, and the bullish sentiment allowed EOS to surge above its June 22 low of $3,066. However, according to crypto analyst Saif Naqvi, EOS profits remained finite with 23.6% Fibonacci Extension at $4.15 despite multiple attempts for a breakout to the upside.

After the last unsuccessful breakout attempt, EOS dropped below its 20-day easy moving average (SMA (red)) and actually slipped to the $3.58 support line. According to the analyst, the price can be expected to trade above this defensive level until a more definite trend emerges in the broader market. In another bearish scenario, EOS could return to $3.06, while a bullish result could push the price towards $4.5 and the 50-SMA (yellow).

Analyst: “EOS traders can short sell”

Naqvi said, “EOS seemed to be trading sideways and above $3.58 in the coming days, until a more definite direction emerges in the market. If sellers regain control, the price could reset to its June 22 low at $3,066. In the middle, traders can choose to short on EOS if the price drops below $3.58. Talking about “short positions” here, the analyst underlines that traders can “bet” on the direction that EOS will fall.

Currently, EOS is up 1.3 percent in the last 24 hours. The cryptocurrency has lost 6.9 percent in the last 7 days, 8.7 percent in the last 14 days, and 23.8 percent in the last 30 days.

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