Eos has experienced a price rebound over the past 24 hours totalling 4.17%. Eos is currently exchanging hands at $4.88 after suffering a precipitous decline of 12.52% over the past 7 trading days.
Eos has been described commonly as the most powerful infrastructure for decentralised applications (dapps). It is a decentralised operating system, similar to Ethereum, that allows developers to come and host their dapps in a decentralised manner on top of the EOS blockchain.
Eos is said to be vertically and horizontally scalable through its technology of parallel processing. It had raised over $4 billion in its ICO, making it one of the most sought after projects around.
Eos can boast superior transaction speeds relative to Ethereum and Bitcoin. At this current moment in time, Ethereum can handle somewhere in the region on 25 transactions per second (TPS). This is not nearly enough TPS to power a decentralised operating system as evidenced by the CrpyotKitties nightmare, where one single popular dapp gained so many users that the Eth blockchain was clogged up and fees started to rise significantly. Eos, on the other hand, can currently handle a maximum of 3972 TPS which is significantly higher.
To add further to this, there have been a number of dapps that have moved away from Ethereum’s blockchain to be hosted on Eos’s blockchain. Currently Eos has 299 dapps on its network with 78 of them being live.
Eos is currently ranked at 5th position in terms of overall market cap across the entire industry. It has a market cap value of $4.42 billion and has suffered a 63% price decline over the past 90 trading days.
Let us continue to analyse price action for Eos over the short term and highlight any potential support and resistance zones.
EOS/USD – SHORT TERM – DAILY CHART
Analysing the market from the short term perspective above, we can see that Eos had underwent a significant price increase during April 2018. This occurred when price action started from a low of $3.87 on the 18th of March 2018 and extended to an all time high of $23.02 on the 29th of April 2018. This was a price increase totalling 480% from low to high.
After placing this high, price action went on to decrease, originally finding support at the .618 Fibonacci Retracement level, during the month of May 2018, priced at $11.17. This Fibonacci Retracement is measured from the entire bullish run aforementioned. We can also see that this support zone was bolstered by the 100 day moving average which was trading in the exact same area at that time.
Price action continued to decline throughout June, as the market dropped below the 100 day moving average and continued to fall until support was found at the .786 Fibonacci Retracement priced at $7.97. We can see that more support, specifically, was found at a downside 1.272 Fibonacci Extension level priced at $7.12. Price action managed to hold at this support level throughout July, however, when August 2018 began trading, the market fell significantly below this support level.
Price action, during August, continued to fall past the .886 Fibonacci Retracement and eventually reversed at support highlighted by the low day close price experienced during March, priced at $4.48 (top blue horizontal line). This area of support was also bolstered by a shorter termed 1.272 Fibonacci Extension level priced in the same area.
We can see that the market had gained significant support in this area and rebounded. If the bullish momentum can continue within the market, we expect near term resistance to be located at the .886 Fibonacci Retracement priced at $6.07. Further resistance can be located at the 100 day moving average which is currently hovering around the $8 handle.
Alternatively, if the bearish momentum reenters the market once again, we expect immediate support to be located at $4.48. Support located below this is expected at $3.83 followed by the short term downside 1.414 Fibonacci Extension level priced at $3.30.
The technical indicators are largely favouring the bears at this moment in time. However, as the RSI is rising toward the 50 handle this could indicate that the bearish momentum is showing signs of weakness. If the RSI can hold above the 50 handle this would indicate that the bulls within the market are beginning to gain some form of traction.
Let us continue to very quickly analyse price action relative to Bitcoin.
EOS/BTC – SHORT TERM – DAILY CHART
Analysing the market relative to Bitcoin, we can see that the market had experiecned a bullish wave when price action started from a low of 58K SATS on the 17th of March 2018 and continued to an all time high of 240K SATS on the 29th of April 2018. This was a price increase totalling 340% from low to high.
After placing the high, we can see that price action started to drop, initially finding support at the .5 Fibonacci Retracement during June, priced at 148k SATS. This is a Fibonacci Retracement measured from the entire bullish run outlined above.
Price action continued to fall throughout June and July, dropping below the 100 day moving average and the .618 Fibonacci Retracement until eventually finding support at the .786 Fibonacci Retracement priced at 93K SATS.
Price action, during August, continued even further lower until support was recently found just below the .886 Fibonacci Retracement priced at 74K SATS. We can see that the market had, more specifically, found support at a downside 1.618 Fibonacci Extension level priced at 69K SATS before rebounding.
If the bullish momentum continues, we expect immediate resistance to be located at the downward sloping trend line highlighted on the chart. Further resistance can be expected at the .786 Fibonacci Retracement priced at 93K.
Alternatively, we expect any bearish drop to be heavily supported by the previous support of 69K SATS.