Altcoins are still in the spotlight while Bitcoin continues consolidating. Right now the markets are choppy, giving mixed technical signals. Here is the outlook for EOS, IOTA, and Chainlink.

EOS went through a 36 percent rally that took its price from $3.11 to $4.24 in the last two weeks. Now, a number of technical patterns are indicating that it is bound for a correction.

An evening doji star candlestick pattern is developing on EOS 3-day chart. This is considered a bearish reversal formation that occurs at the top of an uptrend. Evening doji stars are composed of three candlesticks: a long green candle, a short candle, and a red candle. The combination of these three candlesticks indicate that EOS is losing its bullish momentum and indicates a reversal.

Adding to the bearishness, the TD sequential indicator is presenting a sell signal on EOS’ 1-day chart. Based on this technical index, the bearish signal got triggered the moment that a red two candlestick began trading below a red one candles. A spike in the selling pressure behind EOS could take it to test the $3.73 support level. Breaking below this area has the potential to ignite a further correction to the next levels of support that are sitting at $3.52 and $3.30.

Nonetheless, the previously mentioned bearish signals can be invalidated if EOS breaks above the recent high of $4.24. On the upside, the next resistance level is around $4.60.

IOTA saw a major bullish impulse that took its price up 30 or so percent in the last three days. Although it looks like the buying pressure behind it is dwindling IOTA still could have some legs up. But, it will first have to break through major resistance given by the 100-three-day moving average on the 3-day chart.

If IOTA is able to move above this moving average, the next level of resistance that it could test on its way up is around the 150-three-day moving average at $0.41.

The continuation of the uptrend depends on IOTA’s ability to break above the 100-three-day moving average. But, its 1-day chart is signaling that this cryptocurrency is losing its bullish momentum.

Under this time frame, the TD sequential is on a green eight and tomorrow’s candlestick will most likely be a green nine. This indicator anticipated that a green nine is a sell signal with the capacity to spark a steeper correction.

Due to the opposing views seen on the 3-day and 1-day chart, it will be wiser to wait for one of the two scenarios to play out before entering a trade.

A candlestick close and an open above the 100-three-day moving average, in combination with a spike in volume, could be taken as a sign that the uptrend is likely to carry on. On the other hand, following a green nine candlestick, a red two candle trading below a preceding red one candle will confirm that IOTA will retrace.

Following a 69 percent correction that began nearly three months ago, Chainlink appears to have found support. As a matter of fact, the 61.8 and 65 percent Fibonacci retracement zone could be containing the price of LINK from a further decline. This Fibonacci retracement area is considered by many traders as the ‘golden’ retracement zone due to the high probability of a rebound.

Even though LINK has yet to experience a greater bullish impulse that allows it to bounce off this area, this crypto is up 18 percent from the low of $1.50 it made on Sept. 13. If volume starts picking up, Chainlink could have the potential to rise to the 50 percent Fibonacci retracement zone that sits at $2.48.

However, a break below the ‘golden’ retracement zone is considered a trend reversal from bullish to bearish. If this happens, LINK could fall to the 78.6 percent Fibonacci retracement level around $1.15.

Before any conclusion can be made on whether LINK is bound for a major move, it’s necessary to look at the moving averages on its 1-day chart to determine what scenario is more likely.

If Chainlink is able to regain the 150-day moving average as support it could try to go up and test the resistance given by the 100-day moving average. However, LINK seems to be currently breaking below the 150-day moving average, signaling a retest of the 200-day moving average. If this cryptocurrency is indeed on its way down to the 200-day moving average, this level must hold or Chainlink will be worth $1.15.

At the moment, it is important to pay attention to both the 150 and 200-day moving average as they will determine the future market valuation of LINK.

The market is giving signs that a new “altseason” is underway. As seen in the cryptocurrencies previously analyzed they all have the potential to continue surging, but each also present bearish scenarios.

In fact, EOS is forming an evening doji star, IOTA is fighting a major resistance level, and LINK lacks sufficient volume to rebound from current levels. These are all bearish signs that could put the idea of a new altseason on hold.

Nonetheless, a spike in volume could totally change the market, allowing these cryptos to continue rising—as they have been lately. Due to the current choppy state of the market it will be wiser to wait for confirmation before entering any big trades.

The post EOS, IOTA, and Chainlink showing mixed signals as Bitcoin consolidates appeared first on CryptoSlate.

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