EOS And Cardano Form Golden Cross, Further Increase Ahead

EOS and Cardano have had a similar action regarding the price this year so far and both of the cryptocurrencies saw a formation of a major bullish pattern forming at the same time as the price surge. Now, they are preparing for another retracement before continuing the bullish trends as we can see in the Cardano news today.

More than $110 billion flood the crypto market since the start of 2020 and the inflow of capital allowed a lot of digital assets to surge including EOS and Cardano. Both of the altcoins increased by 106.50% and 95% respectively. As EOS and Cardano started climbing, a golden cross started forming according to the 1-day charts. This pattern developed in the 50-day moving average and it crossed above the 200-day moving average as well.

Some of the major technical analysts in the industry said that this pattern is one of the most definitive buy signals that could start a bull market and the last time these cryptocurrencies saw a golden cross forming was between their 50 and 200-day MA in early April 2019. As per the EOS news, the altcoin skyrocketed by 105 percent while Cardano surged more than 50%. A similar scenario is in the making but they will first have to retrace after the latest exponential price increase.

The TD sequential indicator shows that a retracement could soon be underway based on the EOS charts since, over the past few days, the technical index presented two new sell signals. The bearish formations show that a one to four candlesticks correction can be a new beginning of a downtrend before the continuation of the bullish trend. EOS seems to be getting rejected by the upper boundary from 2019 and since then, every time when the crypto gets down, it went to hit the top and drop again.

If the technical pattern continues to hold, a retrace to the middle boundary of the channel could be expected which could eventually prevent this cryptocurrency from further correction. With a bearish impulse such as this one, EOS will have to break below the 78% Fibonacci retracement level at $4.42 to then hit the 61.8% which is where the parallel channel sits. Cardano also presents multiple bearish signs and there was even a divergence between the price of ADA and the relative strength index. The divergence usually happens when the price is making a lot of highs while the RSI is making lower highs as well.