Sun. Aug 14th, 2022

The cryptocurrency market is again under the pressure and all major cryptocurrencies are losing their value. 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. According to the latest news, China could start to use a cryptocurrency reward system for army personnel. Chinese soldiers will be rewarded in cryptocurrency and this is certainly positive news for the future of cryptocurrencies. The price of EOS currently stands around $3.36 and at this value, the total market cap of EOS is around $3.4 billion. In the chart below (a period from December 2018), I have marked major resistance and support levels which can help us to understand where the price could move. The current resistance levels are $4, $5 and $6, $3 represents the current support level.

We can also notice that the price of EOS has weakened from $8 to $2.5 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 $3 strong support that would be a strong “SELL” signal and the open way to $2.

 

Recommendation: EOS is one of the worst performers on the cryptocurrency market in the last several months. I can agree that this is a risky coin, its future is still not sure and it is really hard to measure currently potential of this cryptocurrency. The strong support level of this cryptocurrency stands around $3 but according to technical analysis, the downtrend is not over yet. If the price weakens to $2.5 or even $2 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. 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 $3 strong support that would be a strong “SELL” signal and the open way to $2.

 

By Dov Herman

Dov is a Blockchain and Forex trading enthusiast, who spends most of his time trading and examining software who are related to cryptocurrencies and forex trading. You can follow on Dov’s reviews and articles here on TrustedBrokerz and across the web.