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EOS Price Analysis: More Bears Waiting to Hop In?

EOS is trending lower on its 1-hour chart and might be due for a quick correction.

EOS has formed lower highs to trade below a descending trend line so far this week. Price also recently fell through near-term support around 4.8000 to signal a pickup in selling pressure.

It is finding support around the 4.1800 area, though, so a pullback may be in order. Applying the Fibonacci retracement tool shows that the 61.8% level not only lines up with the former support but also with the descending trend line resistance.

If any of the Fib levels keep gains in check, EOS could fall back to the swing low or lower. The 100 SMA is still below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the downtrend is more likely to resume than to reverse.

EOS joined most of its cryptocurrency pairs in the latest selloff as this altcoin is also holding out for more positive updates. One of these could be the hackathon coming up in San Francisco in November 10-11 as the event would put the spotlight on EOS developments.

So far, EOS is down roughly 10% to start the week as risk aversion in the global financial markets has been in play. Although there is some demand for alternative assets in the wake of the turmoil in Turkey, it appears that most of the gains have been taken by bitcoin.

Nonetheless, EOS continues to attract new DApps that were initially on the Ethereum platform and might even be looking to change the minds of newer ones that are looking to develop on the Ethereum blockchain.

@MeetDotOne – an EOS-centric account – tweeted a list of DApps now available on the EOS platform. It also helps to remember that the Chinese government, through the China Electronic Information Industry Development (CCID), has ranked EOS in the number one position once more.

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EOS Price Analysis: Gearing Up for a Test of Support

EOS has been trading inside a range visible on the 4-hour chart, bouncing off support around 7.0000 and finding resistance at 9.2500. Price was rejected on its latest test of the top and might be due for another move to the bottom.

For now, EOS is hovering at the mid-range area of interest, where some buyers appear to be defending the floor. The 100 SMA is also in line with this area of interest and might continue to hold as dynamic support.

However, this shorter-term SMA is below the longer-term 200 SMA to suggest that the path of least resistance is to the downside. In other words, the drop is more likely to carry on than to reverse. The 200 SMA is holding as dynamic resistance as well.

Then again, the gap between the moving averages is narrowing to signal slowing bearish pressure and a potential upward crossover. If that materializes, bullish pressure could kick in and might even be strong enough to spur a break of the top. The resulting rally could be of the same height as the range.

RSI is pointing down to reflect some selling pressure but is also moving sideways at the middle of its range, reflecting further consolidation. Stochastic is heading lower to show that sellers have the upper hand and could be strong enough to push for a move back to the floor or lower. A break below support could also lead to a drop that’s the same size as the range.

Cryptocurrencies have had a good run at the start of the month and also last week when institutional interest put the spotlight back on the industry. However, bitcoin appears to have left most of its altcoin rivals eating dust as it rakes in more of the gains in anticipation of the SEC decision on a bitcoin ETF.

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EOS Price Analysis: Time for a Pullback?

EOS was consolidating inside a falling wedge pattern previously highlighted, indicating that an uptrend is in the cards. Price hit resistance around 9.3764 and is retreating, possibly making a correction to the broken resistance.

Applying the Fibonacci retracement tool on the latest swing low and high shows that the 61.8% level is closest to the broken wedge top, which might now hold as support. If so, EOS could resume the climb to the swing high or higher.

However, the 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the downtrend still has a chance at resuming.

Then again, the gap between the moving averages is narrowing to indicate weaker bearish pressure and hint at a potential upward crossover. These dynamic inflection points are also around the 38.2% to 50% Fib levels, which might be enough to keep losses in check.

RSI is still pointing down to indicate that selling pressure is in play, possibly drawing EOS lower from here. Stochastic is also heading south so EOS price might follow suit until the oscillator hits oversold levels.

Cryptocurrencies have been on a good run for the most part of July, with some saying that the industry has already bottomed out. However, others dismiss this as a short squeeze or dead cat bounce.

The focus has been on institutional funds these days as it was reported that BlackRock, the world’s largest asset manager, has formed a team to look into investment opportunities in the space. Further updates like this could continue to prop EOS and its peers higher in the coming weeks as it fuels investor optimism and projections of higher liquidity.

Meanwhile, the dollar has been on shaky ground after Trump blasted the Fed for hiking rates and nullifying the progress made in fiscal reform.

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EOS Price Analysis: Just Waiting for a Breakout

EOS is consolidating inside a falling wedge on its 4-hour time frame and is currently testing the top. Price could tumble back to the bottom if this resistance holds or attempt to make a breakout.

However, the 100 SMA is below the longer-term 200 SMA to suggest that the path of least resistance is to the downside. In other words, resistance is more likely to hold than to break. Also, the moving averages could hold as dynamic inflection points and keep gains in check just around the 8.000 mark.

RSI is also turning lower after briefly hitting overbought levels, indicating that selling pressure is about to return. Similarly stochastic just reached the overbought region to reflect exhaustion among buyers and is ready to head south, so EOS could follow suit.

If selling pressure is strong enough, EOS could make a break below the wedge support and trigger a sharper selloff. Note that the wedge pattern spans 6.000 to around 22.000 so the resulting move could be of the same height.

Cryptocurrencies like EOS had a rough previous week owing to dollar strength and risk-off moves. It didn’t help that economists like Roubini and Stiglitz blasted bitcoin and its peers once more, dampening investor sentiment even after a strong start the other week.

This time, the mood seems to have improved once more as buyers continue to defend near-term support zones. For many, this represents as good a time as any to hop in the market while prices are low.

Still, trade-related headlines could continue to influence cryptocurrency demand in the week ahead, along with overall market sentiment. Updates on industry regulation could also affect price action, and it’s worth noting that the US recently indicted twelve Russian officials for allegedly using cryptocurrencies to interfere in the elections in 2016.

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EOS Price Analysis: Next Downside Targets

EOS continues to trade lower beneath a descending trend line visible on the daily and 4-hour time frames. Price just bounced off this resistance and is setting its sights on the next downside targets marked by the Fibonacci extension tool.

The 38.2% extension is below the swing low at 6.3000 and the 50% extension is at 5.3000. Stronger selling pressure could take it down to the 61.8% extension at the 4.3000 area, which lines up with a longer-term horizontal support. Sustained bearish momentum could lead to a drop to the 78.6% extension at 2.8683 or the full extension at 1.0550.

The 100 SMA is still above the 200 SMA, though, so the path of least resistance is to the upside. In other words, there’s still a chance for EOS to make rallies. Then again, the gap between the moving averages is narrowing to reflect slowing bullish momentum.

RSI has been on the move up but is pointing back down to reflect a return in selling pressure. Reaching oversold conditions and turning back up could bring buyers back, though. Stochastic has more room to fall and is heading south without even reaching overbought levels, which means that sellers are eager to return.

Cryptocurrencies are erasing some of their earlier gains on a positive start for the quarter as well-known American economists had some negative remarks on bitcoin.

Joseph Stiglitz, Nouriel Roubini and Kenneth Rogoff focused mostly on the role of governments and regulation in cracking down on cryptocurrency activity and how its price volatility prevents it from becoming a stable store of value.

According to Roubini:

“For bitcoin to be a currency it has to be a unit of account, a means of payment, and a stable store of value. It is none of these. Bitcoin is not even accepted at Bitcoin conferences, and how can something that falls 20% one day and then rises 20% the next be a stable store of value.”

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EOS Price Analysis: Higher Correction or Downtrend Continuation?

EOS is trading under a descending trend line on the 1-hour time frame but has yet to test this resistance. The 38.2% Fibonacci retracement level already seems to be keeping gains in check, though, and price could resume the drop to the extension levels.

However, EOS has yet to form new lows to confirm that the retracement is over. A larger pullback could still reach the 9.000 level near the 50% Fib and 200 SMA dynamic inflection point.

Speaking of moving averages, the 100 SMA is safely below the longer-term 200 SMA to signal that the path of least resistance is to the downside. This means that the downtrend is more likely to resume than to reverse. Also, the gap between the moving averages is widening to signal stronger selling momentum.

RSI is also moving south to show that sellers have the upper hand. Stochastic is heading lower but is dipping in oversold territory to reflect bearish exhaustion and a potential return in buying pressure.

Sustained selling pressure could lead to a test of the swing low at the 38.2% extension or the 50% extension at 6.5215. Stronger bearish momentum could lead to a drop to the 61.8% Fib at 6.0487 or the 78.6% level at 5.3755. The full extension is at 4.5181.

The US dollar strengthened across the board on cooling trade tensions as Trump expressed willingness to go through CFIUS approval before slapping restrictions on foreign investments in US companies. However, he also clarified that they are targeting all countries trying to steal US technology and not just China.

Cryptocurrencies are still on weak footing though, possibly drawing another round of selling pressure on Jack Ma’s comments against altcoins. He remarked that blockchain technology has plenty of applications but that bitcoin is likely a bubble.

This adds to the gloomy sentiment in the industry as investors are already wary about recent hacking incidents and rising regulatory oversight, with the latest coming from Japan’s authorities.

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EOS Price Analysis: Where Buyers Are Waiting

EOS was previously consolidating inside a symmetrical triangle pattern and has broken to the upside to signal that bulls gained the upper hand. However, price hit resistance at 15.50 and is currently retreating from the climb.

Applying the Fib retracement tool on the latest swing low and high shows that the 61.8% level is close to the broken triangle resistance, which might now hold as support. This also lines up with a former horizontal resistance and the 100 SMA dynamic inflection point.

Speaking of moving averages, the 100 SMA is still below the longer-term 200 SMA to suggest that the path of least resistance is to the downside. In other words, the drop is more likely to persist than to reverse.

The 200 SMA also recently held as dynamic resistance and might continue to do so. Then again, the gap between the moving averages is narrowing to signal a slowdown in selling momentum and a potential upward crossover.

RSI is on the move down so EOS could follow suit while bears remain in control. Stochastic is also heading lower but is approaching oversold levels to reflect exhaustion among sellers. Turning back up could mean a return in bullish pressure and a possible bounce for EOS.

EOS made its mainnet launch but it has been days but the blockchain has yet to go live. Block.One released version 1.0.0 of the EOS software on Saturday and has left it to the community to get it off the ground.

As it is, participants in the EOS ICO have purchased all the initial ethereum tokens that will ever be used to bootstrap the project. These tokens are frozen until the official blockchain is live, and so far exchanges have been able to adapt to this change.

With that, EOS price could stay in limbo until actual updates, whether negative or positive, are announced. Any major glitches could lead to a large drop in price while blockchain developments could lead to a bounce.

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Block.one Launches EOSIO, Signs $50 million JV Partnership with SVK Crypto

Block.one has announced the launch of the EOSIO blockchain software. The release of the open source EOSIO 1.0 was revealed via a blog post on the company’s website on June 2, 2018. EOSIO is touted as a revolutionary decentralized protocol for both enterprise and community applications. The EOSIO launch also coincides with the establishment of a $50 million partnership between Block.one and SVK Crypto.

EOSIO 1.0 From Block.one

These appear to be exciting times for the EOS movement as a whole with the mainnet launch and now the release of the EOSIO blockchain software. EOSIO can operate without the need for accompanying digital token assets. However, the program can also be configured to allocate resources via market fees, voting, or staking protocols. Thus, EOSIO can be implemented for both public community-focused blockchains and corporate enterprise blockchain solutions.

EOSIO is designed to use either of two Web Assembly engine configurations – Binaryen and WAVM. According to Block.one, EOSIO encompasses the following design features:

  • Free Rate Limited Transactions
  • Low Latency Block confirmation (0.5 seconds)
  • Low-overhead Byzantine Fault Tolerant Finality
  • Optional high-overhead, low-latency BFT finality
  • Smart contract platform powered by Web Assembly
  • Designed for Sparse Header Light Client Validation
  • Scheduled Recurring Transactions
  • Time Delay Security
  • Hierarchical Role Based Permissions
  • Support for Biometric Hardware Secured Keys (e.g., Apple Secure Enclave)
  • Parallel Execution of Context Free Validation Logic
  • Inter Blockchain Communication

EOS is currently experiencing a marked increase in price. The token is now up by more than 16 percent in the last 24 hours according to CoinMarketCap. Much of that increase occurred during a four-hour period on today, June 2, 2018.

A few Words of Caution

While launching EOSIO, Block.one provided a few words of caution for potential users. The blockchain program is presented “AS IS.” Thus, users must take care to verify the viability of the companies that build protocols on top of EOSIO before interacting with them. The company also urged developers to take note that the third-party libraries used are provided in “AS IS” conditions as well. Block.one bears no liabilities for any damages that might occur while using the EOSIO blockchain software.

The Block.one – SVK Crypto JV

In a related development, Block.one has also announced a $50 million partnership with SVK Crypto. The collaboration aims to develop useful applications built on the EOSIO blockchain software.

Commenting on the partnership, Brendan Blumer, the CEO of Block.one said that:

Working with a market-leader such as SVK Crypto is a positive step as we grow the impact and footprint of the EOSIO developer ecosystem. This fund further strengthens our top-notch roster of VC partners focused on identifying and fostering projects that are building a decentralized, open future.

The $50 million partnership is the fifth funding round carried out via Block.one’s EOS VC initiative. According to the announcement, SVK will be in charge of the funds. Speaking on the collaboration, Hugh Cochrane, the co-founder of SVK said that:

Block.one has created the world’s most powerful infrastructure for decentralized applications and is the most forward-thinking company driving growth in the blockchain space. SVK Crypto is thrilled to partner with Block.one to establish a fund that enables developers to thrive. We look forward to helping to produce innovative game-changing DAPPs in the coming months and years.

Will Block.one’s EOSIO blockchain software contribute to taking EOS tokens “to the moon?” Do you think the partnership between Block.one and SVK Crypto will create more use-cases for the EOSIO blockchain? Keep the conversation going in the comment section below.

Images courtesy of Block.one and CoinMarketCap.

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EOS Price Analysis: Mainnet Launch in Jeopardy with “Epic Vulnerabilities”?

EOS has formed lower highs and higher lows recently, consolidating inside a symmetrical triangle pattern. A downside break could lead to a drop to the 6.0000 support while a break higher could lead to a rally to the 20.000 resistance.

The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. In other words, a break lower might be more likely to happen, especially since the 100 SMA dynamic inflection point lines up with the triangle top.

RSI is pointing up, though, so there may be some buying pressure left. Similarly, stochastic is heading up so EOS could follow suit.

Much hinges on the EOS mainnet launch though, as many fear that it might be delayed by the bugs recently discovered. As it turned out, a Chinese cybersecurity firm saw “epic vulnerabilities” that could have allowed an attacker to gain control of the network’s nodes by uploading a malicious smart contract to the EOS network. Having done so, they could manipulate transactions or use the nodes as a de facto botnet to mine another cryptocurrency.

However, developers said that this wouldn’t prevent them from shipping the software on time. In a tweet, they noted:

Media has incorrectly reported a potential delay in the release of EOSIO V1 due to software vulnerabilities. Our team has already fixed most and is hard at work with the remaining ones. EOSIO V1 is on schedule; please stay tuned to our EOSIO channels for official information.

For now, investors appear to be wary of future updates, although EOS lead developer Daniel Larimer was able to patch the vulnerability quickly after identification. The mainnet launch will allow EOS to be independent of the ethereum network and could open up a host of benefits for the altcoin.