On Fri July 13, EOS is trying to recover after a previous downward move, says Dmitriy Gurkovskiy, Chief Analyst at RoboForex.
EOS is now trading at $7.1077, adding +2.8%. The midterm trading channel is descending, while in the short term, it is trading sideways between $6.7710 and $8.2712.
Such a wide trading channel may house the EOS price for quite long, as the D1 chart shows the crypto is still under heavy pressure. Just a day before, EOS touched $6.5500, it’s lowest low since Apr 11. With quite low volatility over the last few days, the momentum still may increase, which could lead to EOS falling towards $5.9742, in case fundamentals and corporate news turn negative.
Currently, the investors are locking in their profit by closing their short positions, which means they are not fully ready for any further falls. Once they are, the breakout at $7.0000 will show this, which could then lead to the support breakout at $6.7700 or $6.7500, and then to a further plunge.
Thus, the key support for EOS is at $6.7500, while the resistance is between $8.0000 and $8.3400. The MACD is negative on D1, moving along the signal line, still giving a moderate buy signal, while the Stochastic is recovering and ready to become fully positive, which is a buy signal, too.
EOS fundamentals are now mostly focused on Block.one startup company, which now own around 10% of all EOS tokens and is determined to vote for block producers.
No one, except for Block.one and the devs, have more than 3% support, and this is what makes the market worry. There were 1B tokens issued in total, and each token gives the right to vote for 30 developer candidates. With 10% of tokens, Block.one can easily win this, which will spread their unlimited influence over the network, and this is not something the users are looking for. EOS network was fully launched just around 2 months ago, and the market emotions have just calmed down.
Another important piece of news is related to EOS Constitution. Dan Larimer, Chief Technology Officer, suggested amending it a couple of weeks ago. When asked whether EOS is going to remove the current Constitution and implement a new one that would allow referees to resolve various code-related disputes, Larimer’s answer was positive. The market reacted instantly, and many said EOS was starting it all over again, although it started not very long ago anyway.
Disclaimer: Any forecasts contained herein are based on the authors' particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
Dmitriy Gurkovskiy is a senior analyst at RoboForex, an award-winning European online foreign exchange forex broker.