- EOS is trading around $2.59 but the current negative trend might force it down again
- The main trend of EOS remains bearish and for now, there is no signal of the trend reversal
- EOS developer Block.one is enabling a new platform “EOSIO for Business”
The price of EOS has weakened from $3.91 below $2.50 in less than three months and the current price stands around $2.59. The main reason for this is a low transaction volume and the fact that EOS investors faced trust issues.
Fundamental analysis: There’s still a level of uncertainty
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.
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Some analysts say that this cryptocurrency has a positive long term outlook because EOS could replace Ethereum as the dominant smart contract platform. Investors in EOS should have in mind that this is a still very risky cryptocurrency but now could be a good time to trade EOS.
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. EOS price has been moving in a downtrend last three months and for now, there is no signal of the trend reversal.
According to the latest news, EOS developer Block.one is enabling a new platform “EOSIO for Business”. This platform will allow businesses to build and maintain blockchain-based infrastructure.
This is certainly positive news for EOS but the price of this cryptocurrency is still not able to recover above the $3 resistance level. EOS investors faced trust issues since the U.S. Securities and Exchange Commission (SEC) slapped a $24 million penalty to Block.one (EOS’s parent company).
The reason for this was an unregistered initial coin offering and the investors started to have doubts over the project’s long-term viability. Transaction volumes have become smaller and analysts found out that people use EOS for placing small bets instead for value-transfer purposes.
Technical Analysis: The main trend of EOS remains bearish
According to the rules of technical analysis, the main trend of this cryptocurrency is bearish. The current resistance levels are $3, $3.5 and $4, $2.5 and $2 represent the strong support levels.
If the price jumps above $3 it would be a signal to buy EOS and we have the open way to $3.5. Rising above $3.5 supports the continuation of the bullish trend and the next price target could be located around $4.
On the other side, if the price falls below $2 it would be a strong “sell” signal and we have the open way to $1.5.
EOS has been moving in a downtrend last three months and for now, there is no signal of the trend reversal. EOS is constantly adding new clients but there’s still a level of uncertainty surrounding the project. If the price falls below $2 it would be a strong “sell” signal and we have the open way to $1.5.