EOS, a prominent altcoin in the cryptocurrency market, has been facing significant challenges in breaking through the $0.64 resistance level. Despite recent gains, the digital asset’s performance indicates that it’s likely to stay below this key threshold.

EOS’s Struggles at $0.64 Resistance

EOS recently saw a 5.4% increase in 24-hour trading, positioning it as one of the better-performing altcoins in the market with a sizable market cap. However, despite these gains, the cryptocurrency failed to push above the critical $0.64 resistance level for the third time in March. On all previous attempts, the price quickly dropped back to lower levels, such as $0.55 and $0.45. This consistent rejection has raised the possibility that EOS is trapped in a range between $0.46 and $0.64, without the momentum to break out beyond this resistance zone.

Selling Pressure and Market Sentiment

One of the key indicators suggesting that EOS may remain below $0.64 is the heavy selling pressure observed in the market. The volume indicator for EOS has shown significant selling activity throughout March, which has kept the price from advancing. Although the Awesome Oscillator briefly climbed above the zero mark, signaling a potential shift in momentum, other metrics paint a different picture. The Chaikin Money Flow (CMF), which measures the amount of capital flowing in and out of the market, is well below -0.05. This suggests that there has been more capital flowing out of EOS than coming in, signaling that sellers are in control.

This heavy capital outflow aligns with the price action on the 1-day chart. Despite some short-term gains, the lack of buying pressure has kept EOS from overcoming resistance levels, and it appears that a reversal is imminent. If EOS fails to push through $0.64, the price may once again retreat to support levels at $0.55 or even $0.45, which have been important in the past month.

Long/Short Ratio and Potential Reversal

Another concerning factor for EOS is the high long/short ratio observed in recent trading activity. The ratio has shown that long positions make up 51.4% of the taker volume, suggesting that many traders are betting on an upward move. The last time the ratio was this high, on March 18, EOS saw a dramatic drop from $0.67 to $0.56 the very next day. This indicates that when there is a high concentration of long positions, the market is more susceptible to a reversal, as the price struggles to break resistance.

Traders should be cautious of similar downward price action in the near future, particularly as the $0.64-$0.66 range remains a significant point of resistance. Given the high number of long positions, the likelihood of a bearish reversal increases, as market conditions suggest that EOS may struggle to sustain its gains.

Liquidation Heatmap and Bearish Sentiment

The 3-month liquidation heatmap further confirms that the $0.66-$0.69 range could act as a “magnetic” zone for the price, attracting EOS higher temporarily. However, a bearish reversal seems more likely due to the lack of sustained buying pressure. The heatmap suggests that there are significant liquidation zones just above $0.64, which could lead to a surge in selling if the price fails to break past these levels.

Given the current market conditions, traders should prepare for the possibility of a range-bound market. EOS may find itself fluctuating between the $0.46 and $0.64 levels, unable to break free from this pattern unless a significant shift in market sentiment occurs.

Conclusion

EOS’s price action indicates that it’s likely to remain below the $0.64 level in the near term. With selling pressure outweighing buying momentum and a high long/short ratio suggesting the potential for a reversal, traders should be cautious. A range formation between $0.46 and $0.64 is the most likely scenario for EOS, and traders should watch for any signs of volatility in the short term. If the price tests the $0.64-$0.66 area again, it could present a key opportunity for those looking to sell or short the token.