EOS remains in a bear market despite ongoing election uncertainty

EOS remains in a bear market despite ongoing election uncertainty

The US elections are closely watched, according to the latest news Biden is taking the lead in Georgia, Pennsylvania, Nevada and Arizona but the US presidential election continued to progress with a winner not yet officially announced. The cryptocurrency market is advancing this week but EOS price is still not able to surpass the $3 resistance level as sellers remain in control of the price action.

Fundamental analysis: Investors still have doubts over the project’s long-term viability

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.

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.

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.

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.

Technical analysis: Sellers remain in control of the price action

Data source: tradingview.com

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.

Summary

Most of the major cryptocurrencies have advanced as the US presidential election continued to progress with a winner not yet officially announced. Joe Biden has a good shot at becoming the 46th President and Biden’s camp hopes they will cross the threshold of 270 very soon. The cryptocurrency market is advancing this week but EOS price is still not able to surpass the $3 resistance level as sellers remain in control of the price action.

The post EOS remains in a bear market despite ongoing election uncertainty appeared first on Invezz.

Publication date: 
11/07/2020 - 13:48
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Disclaimer

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.