What are the prospects for EOS
What are the prospects for EOS

By redex | redex | 5 Feb 2020


In the first week of February, EOS still looks promising. On Wednesday the EOS trades at $4.34 and is growing.

Considering the 4-hour EOS chart from the point of view technical analysis, observe a stable upward motion channel. We can consider the level of $5 as the main target of these dynamics. At the same time, we should note the divergence on the MACD indicator. This situation indicates the possibility of a corrective decline. It will possible to talk about the beginning of such a recession only after the support line breaks down near the level $4. The target of the corrective decline will be the level of 61.8% on the Fibonacci scale ($3.2).

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The 1-hour EOS chart shows the development of the triangular correction channel. The "triangle" is a temporary construction. A breakthrough in the upper boundary by $4.37 will signal the end of the local short-term correction. In its turn, a break-down of the lower boundary at $4.09 will be a signal of a deeper correction decline to the Fibonacci levels of 23.6% ($3.94) and 38.2% ($3.65).

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The cryptocurrency stands at the September highs, and as long as investors do not sell, it has a chance to return to a confident rise. Recently, the EOS market capitalization has grown by $4.129 billion. Now EOS ranks eighth in the rating of the most stable cryptocurrency. The largest price for EOS noted in April 2018, when the cryptocurrency traded at $22.98.

Now the value is 81.73% below its peak values. There are two coins in the top ten cryptocurrencies whose technologies support PoS, DPoS. It seems that the possibility of more income will attract investors' attention when there are no bright movements in the market. Soon, the PoS algorithm is also planned to switch to Ethereum, which will further expand its distribution. For EOS it is a positive moment. The general mood of the cryptocurrency market for growth "pulls up" EOS too, given that it has no strong fundamental factors for the rise.


Financial market forecasts are a private opinion of the author. The analysis does not constitute a guide to action.

 


redex
redex

Crypto enthusiast and trader.


redex
redex

Crypto enthusiast and trader.

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