Sun. Aug 7th, 2022

EOS is a blockchain-based decentralized operating system that enables businesses to build blockchain applications in a way similar to web-based applications. Elimination of transaction fees and scalability are two major features of the software. Since many of the enterprises and companies and developers are looking for such a decentralized blockchain-based platform, the future looks bright but there’s still a level of uncertainty surrounding the project. One of the factors to consider before deciding whether or not to buy EOS tokens is the competition the EOS network will face from other similar projects. EOS faces a huge battle to dethrone Ethereum as the number-one platform for dapps and smart contracts, while it will also need to compete with a host of other projects with similar goals. The price of EOS currently stands around $2.60 and at this value, the total market cap of EOS is around $2.6 billion. In the chart below (a period from May 2019), I have marked important resistance and support levels which can help us to understand where the price could move. The current resistance levels are $3, $4 and $5, $2.5 and $2 represent the current support levels.

The crypto market goes through bullish and bearish phases that hugely influence the price of EOS. Bitcoin has the most effect on the overall market, but we have also seen altcoin-led rallies in the past, known as “alt seasons”. We can notice that the price of EOS has weakened from $7.5 to $2.14 in less than 180 days and the current recovery could not be considered the end of this trend. EOS remains in the bearish phase but if the price advances above $5 it could be a good sign of the trend reversal. If the price drops below $2.5 support level that would be a “SELL” signal and the open way to $2. If the price weakens to $2 or even $1.5 that would be an excellent entry price for the long term investors. I would recommend everybody to be careful and to invest a small sum of money in EOS, the best time period for me is between 3-5 years, hold and wait.

Recommendation: EOS is one of the worst performers on the cryptocurrency market in the last several months. According to estimates, EOS is one of the cryptocurrencies which you should definitely not ignore but in my opinion, this is still risky cryptocurrency. The positive thing is that lots of partners are already supporting this cryptocurrency and EOS is already connected with several big companies. It is very hard to explain the actual value of EOS and because of that, I would recommend everybody to be careful with investing in this cryptocurrency. The strong support level of this cryptocurrency stands around $2 but according to technical analysis, the downtrend is not over yet. If the price advances above $4, short-term traders can enter the position with the stop loss at $3.4 and take profit at $5 or above. If the price drops below $2 strong support that would be a strong “SELL” signal and the open way to $1.5.