Eos has seen a small 3% price decline over the past 24 hours of trading. The cryptocurrency, at the time of writing, is trading above $6 at $6.05 after seeing a 24.64% price hike over the past 7 trading days.
What’s been going on?
After months of deliberation, the Eos team have finally decided to launch their long-planned referendum system which will allow users to vote on network proposals based on the number of coins they own.
Why is the Referendum System important?
Eos has long planned to become a fully autonomous blockchain with the community voting on any network proposals. The only problem is that the voting system does not yet exist. It was not built when the coin went to mainnet and users have been waiting ever since for this feature to be released to allow for the democratic voting process to be possible.
What about the $35 million inside the savings account?
There is an Eos wallet which currently holds around $35 million worth of tokens. This figure is expected to hit around $200 million in 12 months time, the only problem is that this account is locked and nobody can access it just yet.
The $35 million that sits inside the eosio.saving wallet is meant to be used for Eos development projects to improve the ecosystem. With the launch of the new voting mechanism, known as the Referendum System, this wallet will eventually be allowed access as users can vote on how to distribute the money to which development projects.
Where is Eos currently ranked?
Eos is currently ranked in 5th position in terms of overall market cap across the entire industry. The 14-month-old coin has a total market cap value of $5.48 billion after seeing a precipitous 50% price decline over the past 90 trading days.
Let us continue to analyse price action for Eos over the short term and gather an update on where we can be heading.
EOS/USD – SHORT TERM – DAILY CHART
A brief catch up
In our last analysis, catch up here, we had highlighted that in the event that the market would continue lower, we expected the March 2018 low day close, priced at $4.48, as potential support.
So what actually happened?
Price action did indeed head further lower and we can see that a strong level of support was found exactly at the $4.48 handle. This area of support was significant enough to propel the market higher after rebounding.
Where are we now?
We can see that over the last trading session, price action has now met resistance marked by the previous long term .886 Fibonacci Retracement level priced at $6.07. For a reminder on the long term outlook on the coin we recommend you revisit our last analysis post, here.
We can also see that for the past 3 trading weeks the market has established a narrow trading range bound between the support seen at $4.48 and the resistance seen at the long term .886 Fibonacci Retracement priced at $6.07.
Where can we go from here?
In the event that the bulls can break price action above the upper boundary of the range, above $6.07, then we expect immediate resistance to be located at the previous downside 1.272 Fibonacci Extension level priced at $7.12.
Further resistance above this level is then expected at the yearly opening price, at $7.58. It is important to highlight that this resistance level will require significant momentum to overcome due to the 100 day moving average which is hovering within the same price range.
If the bulls can push even higher, the next level of significant resistance will be located at the psychological round number handle of $8.00 followed by the July 2018’s highs around the $9.03 handle.
What if the bears regain control?
If the bears can push price action lower, we expect immediate support to be located at the previous downside 1.414 Fibonacci Extension level priced at $5.34 followed by the lower boundary of the trading range priced at $4.48.
In the event that bears can push price action below the established trading range then we expect further support to be located at the psychological level of $4.00 followed by the spike low price seen in March 2018 priced at $3.83.
What are the technical indicators printing?
The technical indicators within the market are showing favour towards the bulls at this moment in time. The RSI is trading above the 50 handle indicating that the previous bearish momentum has faded and that the bulls are now in control. So long as the RSI can remain above the 50 handle, we expect this market to continue to make gains.
Similarly, the moving averages are providing favour toward the bulls as the 7 day EMA (blue moving average) has recently crossed up above the 21 day EMA (purple moving average) signalling a bullish crossover which indicates that the bullish pressure is increasing within the market.
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