EOS major trends, EOSUSD growth potential, key levels to trade EOS
In this post I applied the following tools: fundamental analysis, all-round market view, candlestick patterns, volume profile, oscillators and indicators, key levels, graphic analysis, trendline analysis, Kagi chart, Tic-Tac-Toe chart.
Today, I’d like to analyze the EOS performance; it is used to be a popular and well-known with the capitalization worth billions of dollars.
Unfortunately, there different opinions about the EOS cryptocurrency, and the series of scandals around the coin doesn’t stop.
My last forecast for the EOS price to US dollar was published on 20.09.208.
Then, I suggested that the negative would settle down and the EOS would partially cover the losses, rolling back to the traded levels at about $8-$9. In fact, it turned out to be different. Let’s see the current situation.
In general, the local bottom was identified accurately and the support levels perfectly worked out.
However, due to the continuous pressure in the EOS, it is very hard to drive the EOS price higher.
EOS fundamental analysis
The last spell of negative challenged the EOS, when Whiteblock Inc conducted the EOS blockchain audit (you learn the official results here). Because of my main job, I’ve seen a lot of audit reports, and the above post is not in fact a true report. There are presented no figures, only general conclusions, based on the investigation itself.
Major conclusions, published in the report:
- “EOS is not a blockchain, rather a distributed homogeneous database management system, a clear distinction in that their transactions are not cryptographically validated.” So, it is not clear what the computing power of miners is spent on.
- “There is no mechanism for accountability due to the lack of transparency on what Block producers are able to create in terms of computational power.”
- “EOS throughput is significantly lower than EOS initially claimed in marketing materials.”
- “EOS suffers from consensus failures and lacks Byzantine Fault Tolerance.”
It still looks like an unsubstantiated accusation without any supporting facts. There are no reports that would describe in detail the entire EOS audit and all the results obtained, resulted in such serious conclusions.
However, Whiteblock Inc. isn’t going to provide any details to support the published investigation results. Instead of this, the guys decided to conduct a public audit in November, which can be enrolled by anyone who wants. This approach seems a bit strange to me. If you have conducted an audit but do not want to give a detailed description of it and suggest conducting another public one instead, then there is a reasonable suspicion that either the first test was not objective and the announced conclusions can be easily refuted, or this is a common PR campaign to get promoted because of the scandal.
Anyway, it is November now, and it is not so long to wait until public hearings start. However, I’m confident that those auditors will try to scare off puzzled traders and to persuade them to sell their EOS coins at cheap prices.
To find out how the EOSUSD will perform in this environment, I suggest its technical analysis
EOSUSD technical analysis
In the monthly chart above, you see a common for all altcoins situation, a sideways channel in the bearish trend. EOSUSD feature a relatively narrow range of the price swings during October; it is indicated in the chart in the form of the extremely small candlestick.
It is also clear from this chart that the ticker is below the point of control, indicated in the volume profile; it is marked with the red line.
For my further analysis, I marked the nearest monthly highs and lows fro each candlestick (orange and green lines). They are the major key levels so far.
In the weekly EOSUSD price chart, there is a typical sideways trend. There is a clear bottom border at about 5 USD, and the upper on at about 6.10 USD. These borders are close to the weekly Keltner channel’s borders, where the center line is at about 6.52 USD.In the EOS daily chart above, you see an emerging symmetric triangle inside the sideways trend. Currently, there are clear signs of bearish correction and the rebound towards the pattern’s bottom border, at about 5.20 USD. It is indicated by both the ticker itself, which has painted a typical bearish candlestick pattern and the RSI stochastic.
The 12H chart above confirms the above scenario; there is a clear downside movement.
The price ticker, MACD and RSI stochastic indicate a typical slope downward and the corresponding bearish signals.
In the Kagi chart, there is a neutral picture with a slight bullish tendency. There is a series of support levels close to each other, which create obstacles for bears. The indicator itself will send a bearish signal only when the first line at 5.14 is crossed. Until then, it will be in the green zone, sending bullish signals.
In the Tic-Tac-Toe chart above, you see an emerging triangle, where the ticker at the upper borders. It is obvious, that the movement downward will be the easiest for the market participants.
However, in the global view, the triangle breakout downside is not that obvious. There is the strong support level at 4.42 USD; it will be hard to draw the price lower. And there is huge space to go up, so the growth potential is rather high.
Up-to-date EOSUSD trading scenario
Summing up all the above, fundamentally, EOS is facing great problems. You shouldn’t forget that the cryptocurrency market is highly manipulated; as hardly anything can be controlled or regulated. All the negative being created, may be supported by manipulators in oreder to dump the EOS cryptocurrency price as low as possible, as everybody understands the growth prospect provided the project is successful. In addition, there the decentralizes EOSfinex exchange should be launched soon, the public release is planned for January, 2019.
One should estimate the things reasonably, judging by the facts rather than assumptions. EOS is a big project with multi-billion funds invested; so there is no reason to announce it to be a scam.
I’m sure the upcoming public audit will result in panic that will drive the EOS price even lower; but if the EOS administration really knows its business, it would respond in the right way. I don’t see any reasons for the EOS drop below 5 USD. I’m sure the situation is to get a little steady, and in late November, amid the upcoming launch of the exchange, the EOS rate may rise up to 7 USD.
That is the EOS USD forecast, I suggest in order to predict the EOS future. Go on following the EOS USD rate and staying informed on the cryptocurrencies and digital assets.
I wish you good luck and good profits!
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Price chart of EOSUSD in real time mode
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.