EOS network has made a remarkable recovery, gaining 16% in the last 24 hours and reaching a two-month high of $0.78. This sudden surge marks a significant trend reversal after a prolonged period of bearish movement that saw the price plummet by over 70% from December 2024 to March 2025.

While the rapid rise has propelled EOS to the top of the crypto market’s daily gainers list, signs of overextension are beginning to emerge. Overbought indicators such as an elevated Relative Strength Index (RSI) and price movement beyond the upper Bollinger Band suggest that EOS may be poised for a brief price pullback.

EOS Breaks Out of Bearish Channel, Reaches Two-Month High

EOS’s impressive rally began after it broke through the upper boundary of its descending price channel on March 30, 2025. The token had been trapped within this channel since December 2024, struggling to climb above the $1 mark. During this period, EOS’s value plummeted by 70%, reflecting the broader bearish sentiment that had plagued the cryptocurrency market.

However, as the market began to recover in late March, the EOS bulls regained control. The breakout above the descending channel signaled the end of a prolonged downtrend and the start of a new uptrend. Since breaking out, EOS has climbed by 32%, reaching a two-month high of $0.78, a level it has not seen since early February 2025.

When an asset breaks above the upper boundary of a descending channel, it typically signals a reversal of trend from bearish to bullish. This shift in momentum has led many investors to believe that EOS could continue its upward trajectory, potentially reclaiming lost ground and testing higher resistance levels.

Overheated Technical Indicators Point to Potential Correction

Despite the encouraging breakout and upward momentum, a closer look at EOS’s technical indicators reveals potential warning signs. The token’s RSI has surged to 77.10, a level considered to be in the overbought territory. The RSI is a key tool for assessing whether an asset is oversold or overbought. Typically, values above 70 indicate that an asset is overbought and may be due for a price correction, while values below 30 suggest oversold conditions and a potential rebound.

With EOS’s RSI reading at 77.10, there are growing concerns that the asset may be overextended. The RSI is often a reliable indicator of potential exhaustion in a price rally. As more investors jump on the bullish bandwagon, buying activity could slow down, giving sellers a chance to regain control of the market. If this happens, EOS could face a price pullback in the near term.

In addition to the RSI, EOS’s price has recently surpassed the upper line of its Bollinger Bands (BB) on the daily chart. The BB is a volatility indicator that consists of three bands: a simple moving average (middle band) and two outer bands that represent standard deviations above and below the moving average. When an asset’s price breaks through the upper Bollinger Band, it indicates a significant spike in volatility, often suggesting that the asset is overbought and vulnerable to a correction.

The fact that EOS has breached this upper band further reinforces the possibility of a pullback. With the current surge showing signs of overheating, the price may soon retreat toward the lower end of the Bollinger Band or even back to the $0.70 mark.

Strong Bullish Momentum Suggests Further Upside Is Possible

Despite the overbought signals, not all indicators are pointing to a cooldown. One of the most significant technical signals supporting further upside for EOS is its Aroon Up line, which is currently at 100%. The Aroon indicator measures the strength and direction of a trend by tracking the time since the highest high (Aroon Up) and the lowest low (Aroon Down) over a set period. When the Aroon Up line is at 100%, it indicates a strong uptrend and suggests that the asset is in the midst of a bullish phase.

At present, EOS’s Aroon Up reading of 100% signifies that the token is experiencing a strong uptrend. The bullish momentum is still intact, and if the buying pressure continues, EOS could see further price gains. If this trend persists, EOS may continue to push higher and could even test the $0.81 resistance level in the near future.

What’s Next for EOS? A Cooldown or Continued Surge?

The current outlook for EOS is a mixed bag. On the one hand, the token’s strong rally and recent breakout signal the potential for further upside. However, the overbought technical indicators, including the RSI and Bollinger Bands, suggest that a pullback may be on the horizon. These signals indicate that the price may experience some cooling before resuming its upward movement.

Traders and investors alike should remain cautious in the short term. If EOS experiences a price correction, it could retreat toward the $0.70 mark, where it may find support. However, if the bullish momentum persists and buying activity continues, EOS could break past the $0.80 barrier and reach new highs.

As always, cryptocurrency markets are volatile and unpredictable, so investors should carefully monitor EOS’s price movements and the key technical indicators that are shaping the token’s trajectory. Only time will tell whether the recent gains are the beginning of a sustained rally or if a pullback is imminent.

Conclusion

EOS’s impressive surge to a two-month high of $0.78 has many investors excited, but the technical indicators suggest caution. Overbought signals are flashing, and the token may face a price pullback in the near term. However, the strong bullish momentum, supported by the Aroon Up line, indicates that further gains are still possible.

For those looking to capitalize on EOS’s potential, it’s essential to stay vigilant and watch for signs of a trend reversal or continuation. As the market evolves, only time will reveal whether this rally is sustainable or if EOS will cool down in the face of overheated market conditions.