EOS price remains in a bear market despite ongoing optimism on the cryptocurrency market

EOS price remains in a bear market despite ongoing optimism on the cryptocurrency market

The cryptocurrency market is advancing this week but the EOS price is still not able to surpass the $3 resistance level as sellers remain in control of the price action. 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.

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.

The price of EOS has weakened from $3.8 below $2.30 in less than three months and the current price stands around $2.58. 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 of value-transfer purposes.

Technical Analysis: The main trend of EOS remains bearish

Data source: tradingview.com

According to the rules of technical analysis, the main trend of this cryptocurrency still remains “bearish”. The current resistance levels are $3 and $3.5, $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 this week but the price of EOS is not supported by this situation. EOS price has been moving in a downtrend last several months and for now, there is no signal of the trend reversal. The main reason for this is a low transaction volume and the fact that EOS investors faced trust issues. If the price falls below $2 it would be a strong “sell” signal and the next target could be located at $1.5.

The post EOS price remains in a bear market despite ongoing optimism on the cryptocurrency market appeared first on Invezz.

Publication date: 
11/18/2020 - 22:10
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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.