TA Master: EOS/USD future market price prediction

By quintomudigo | Teacher forex school | 30 Oct 2019

$9.69 tipped


EOS is a cryptocurrency created on EOS blockchain network that can be transferred from one peer to another using EOS smart contract address without involving a third party centralized organization like the government. Because of this, EOS cryptocurrency is being considered to be a decentralized cryptocurrency.As a cryptocurrency, EOS was mainly created to become a native coin for EOS blockchain platform by Daniel Larimer who is also the creator of steem blockchain as well as bitshares platform.EOS cryptocurrency was also created to enable one user sending the EOS coin to another user to use it to pay for the fees. EOS coin was also created to enable different Nodes running its network to use the leased coin from stakers to secure its network as well as to validate any block being added to its blockchain network. Since EOS blockchain has smart contract on top of it, EOS coin was also created to enable different Dapps created on its network to be able to use the coin to create and issue the tokens of their Dapps and  to be able to use the coin to pay for transaction of their Dapps on the network. The native blockchain of the EOS coin was mainly created to provide an operating system infrastructure for running different Dapps on the desktop.

  Factors to consider the price movement of EOS

EOS price movement can be considered using several factors like EOS liquidity, Dapps built on its EOS blockchain platform, mass adoption for it as an operating platform and technical analysis by traders.These factors can be further explained as follows;  

1.    EOS liquidity

As a liquidity,its usage in different platform is being considered . The most commonly platform should be its listing in several exchanges. The more its listing on several exchanges the more it has huge number of community members exchanging it in terms of other cryptocurrencies like bitcoin thus the more stability of its price. On the other hand, the less its listing on several exchanges the less its community members thus the more its volatility. EOS coin can therefore be considered to be more stable and less volatile since it is being listed on several exhanges as follow;

https://www.binance.com/en 

 https://big.one/

https://www.hbg.com/en-us/ 

 https://www.gate.io/

https://www.bitfinex.com/ 

  https://bitmax.io/#/home 

 https://pro.coinbase.com/

https://www.kraken.com/en-us 

 https://upbit.com/

  EOS future market price analysis based on bullish and bearish using the liquidity concept can be predicted as follows;  

EOS bullish condition  

Being much more liquidity of being listed on several exchanges from above, EOS current price is $3.35 . If more exchanges will continue to list EOS in their trading platform, this will make EOS to become inefficient in its blockchain platform since it will be circulating in several exchanges thus causing its price to increase further. Different developers from different countries developing their Dapps on EOS platform will have an easy time to transfer their EOS earning from the EOS platform to their favorite exchange platform where they will be able to exchange it to their favorite cryptocurrency like bitcoin. Here is how EOS price analysis looks like based on an increase on its listing in several exchanges;  

351665157-f40e0433f68ff4a6d273c91d1ff6a479c1e39d133eb7c28b2f5e99d6b8a2a1ce.png  

 

  From the price analysis of EOS above, there are two points, A and B. Before point A, the price of EOS can be seen to have reached as high as $3.55.Because of its high liquidity, Developers of different Dapps as well as users of those Dapps created on the EOS platform then decided to transfer their earned EOS to several of these exchanges where they sell them thus causing its price to go further down to 3.55. More exchanges then list the EOS coin to their platform thus causing its demand to increase thus the price is expected to move much higher and surpass $3.55 at point B. In months to come the price will keep on going up as new exchanges emerging the market starting to list the EOS coin  

EOS bearish condition

Being much less liquidity for being listed on very few exchanges, EOS coin will become very much volatile thus affecting traders, community members and Dapp developers income. If in months to come, several exchanges start to delist EOS coin in the platform because Dapps in the platform is not adding value to the community members, the quantity of EOS coin will become in excess in its blockchain thus causing its price to decline. Different developers from different countries developing their Dapps on the EOS platform as well as community members of those Dapps will have difficult time to convert their EOS earnings to other cryptocurrencies thus they will end up dumping their coins in the DEX of the EOS thus causing its price to continue dropping further because the coin will become much more volatile. Here is how EOS price analysis looks like based on decrease on its listing in several exchanges platform;

  351665157-ba5060f80b4500eae803239ffd9e09b7cd2b7a634579ca1284b8f05bb3d72225.png    

 

From the price analysis of EOS above, there are two points, point A and point B. Before point A,the price of EOS can be seen to have gone as low as $3.3191 from previous high of $3.4332. Because of its low liquidity, developers of Dapps created on EOS platform as well as users of those Dapps over there are dumping their earned EOS coin to the few exchanges available including the EOS DEX thus causing the EOS coin to become very much volatile thus causing its price to continue dropping further.Some traders in those exchanges are demanding for the EOS coin thus they are buying the coin in those exchanges thus causing its price to increase a little bit all the way to point A. Many exchanges have started to lose trust in Dapps created on EOS platform thus they have started to delist EOS coin thus causing the liquidity of EOS to decline further thus making it to become much more volatile downwards thus causing its price to keep on declining much further to point B.  

 

2.Dapps built on EOS Blockchain platform  

When EOS coin conducted its ICO in 2017, one EOS coin was going for $0.9. Over a given period of time, the price of one EOS has tremendously managed to go all the way to over $3.5. This increase in price has been due to the increase in number of developers using the EOS infrastracture to develop different Dapps, ranging from social media Dapps, publishing platform Dapps, gambling platform Dapps, Defi Dapps and gaming Dapps that benefits users of those Dapps with monetary value. If in the near future these Dapps increase in number then the price will continue to increase while if these Dapps become obsolete on the EOS network thus they end up looking for other network platform because EOS is not benefiting them over there, then the price of EOS will drop . Here are some of the Dapps built on EOS that are making EOS coin to become a valuable cryptocurrency;

-trybe.one -  a social platform rewarding users and creators

-EOS knights- a gaming Dapps rewarding game players

-EOSbet- Dapp for gamblers

-Dice- Dapp for playing dice games

-Newdex- an EOS DEX dapp

-EQUILIBRIUM -EOSDT - an eos stable coin

-pix-EOS- eos Dapp for art  

EOS future market price for period ranging between one month to the whole year based on bullish and bearish condition using the number of Dapps built on its blockchain platform can further be explained as follows;  

 

  EOS bullish condition

With an increase in the number of Dapps on its platform since its launch in 2017, EOS coin has seen a tremendous increase in its price from $0.9 during its ICO in 2017 to over $3.5 in 2019. Many developers are keeping on joining the platform to develop their Dapps in different areas which are benefiting their community members thus causing the price to keep on rising. Over the next period of time of over 1 month and above, if the Dapps created on the EOS platform will continue to add value to the community members, then EOS coin will become inefficiency in the market since many users of those Dapps will be acquiring it by using those Dapps thus causing its price to increase much further.At the same time, if the EOS platform will continue to improve their infrastructure, more developers will continue to build on the EOS platform thus causing the EOS coin to keep on increasing in its value since it will be considered as a utility coin by those developers to pay for transaction on the EOS platform.Here is how the future price analysis of EOS looks like based on increase in numbers of developers as well as increase in number of users of Dapps created on the EOS platform;

  351665157-3ea1f36a21108ed87c9c2030216685cedeeacbc0ea5f2f07b1179be7e5bb831f.png      

 

From the candlesticks chart analysis of EOS future price above, there are two points, A and B. Before point A, the EOS price can be seen to have gone as high as $3.545.This increase in price is due to the increase in the number of developers of different Dapps on the EOS platform as well as an increase in the number of users of those Dapps on the EOS platform. The developers of those Dapps as well as the users of those Dapps will then dump their earned EOS coin on several listed exchanges thus causing its quantity supplied on those exchanges to reach its maximum point thus pushing its price downwards a bit to point A. More developers of EOS platform as well as users of those Dapps on the EOS again create a demand for the EOS coin on those exchanges platform so that they use the EOS coin for several task such as buying the token of their Dapps and using it to pay transaction on the EOS platform thus causing the price to move further to point B. An increase in the number of developers to build on the EOS platform over a longer period of time like 1 month and above will cause the price of EOS coin to continue increasing much further beyond point B. Also, if the number of users of those Dapps on EOS continue increasing, the EOS price will also continue increasing further to above point B.

  EOS bearish condition

Overtime since the launch of EOS in 2017, its price has been increasing due to an increase in the number of developers on the EOS platform. If EOS start charging high fees to different Dapps created on its platform thus causing their income to be affected, these developers will look for another cheap alternative platform that is not affecting their platform.The users of those Dapps will also move together with the Dapp if the Dapp was benefiting them thus reducing the usage of EOS coin. This will cause those Dapp owners as well as users to start dumping the coin in several exchanges at a cheaper price thus causing the EOS coin to lack buyers thus increasing its supply in its blockchain platform. This will cause its price to  decline much further. As more developers keep on looking for a better platform to run their Dapp, the price of EOS will continue to decrease much further since users of those Dapps will also reduce in number on the EOS platform. Here is how the future price analysis of EOS coin looks like based on the decrease in number of developers on the EOS platform as well as decrease in the number of users of those Dapps on the EOS platform;  

351665157-0d4858232f9b65d1114b013468af6d3f960c1844cb96de96a2e7781f36b4478d.png    

 

From the candlestick chart analysis of the EOS price above, there are two points, point A and point B. Before point A, the price of EOS can be seen to have gone as low as $3.262.This decrease in price over a given period of time ranging from 1 month to 1 year can be as a result of a decrease in the number of developers of different Dapps on the EOS platform as well as a decrease in the number of usage of those Dapps due to unfavorable conditions such as high prices charged by EOS to those created Dapps over there thus affecting the income of those Dapps thus causing them to look for a favorable condition platform that will not affect their income. Users of those Dapps could also have reduce in number due to shift of those Dapps to other blockchain network platform or because those Dapps have started to become scams.Some developers sell their coin to get EOS thus causing its price to move upward to point A a little bit. If more Dapps withdraw themselves from the EOS platform,they will also cause the user to go with them to the favorable platform where they will go thus decreasing EOS coin usage thus causing it supply to increase in its blockchain platform thus causing its price to continue declining further to point B

  3.Technical Analysis by traders

Most traders use technical analysis tools to analyse the direction of the cryptocurrencies market. There are hundreds of technical analysis tools used by different trades since different technical analysis tools work for different traders in different ways. Technical analysis tool can either be a trend indicator or an oscillator indicator.The most commonly used trend and oscillator indicator tool by most traders is moving average and Relative strength index indicator. Moving average indicator works on the basis of support and resistance while Relative strength index indicator works on the basis of overbought and oversold in the market. To analyze the future price of EOS in months to come ,we will use relative strength indicator to indicate whether the EOS coin will become bullish or in bearish condition based on the behaviour of traders. EOS future market price based on technical analysis for bullish and bearish is further explained as follows;  

EOS Bullish condition

using RSI EOS coin will be considered to be in a bullish condition when the candlesticks chart are moving in an upward market direction. RSI indicator will help traders to know whether the market has become in an overbought market condition so that they exit for a shorter period of time and enter again when the overbought market condition is over. In overbought market condition, the RSI will rise above 70. This is indicated as from the EOS future market price analysis candlesticks chart from below;  

351665157-481ba31b6a488e8fd7d221a1c0ff9ac42718749897b48faf079a51660083af15.png  

 

From the EOS future market price candlesticks chart above, there are three points, point A ,B and C. Initially as you can see, the EOS market has been in a bullish condition over a given period of time. At point A, the RSI rises above 70 thus signaling EOS traders that the buyers has exceeded the sellers thus possibility of it reversing back downwards. Most EOS traders who were holding EOS coin then decided to sell them which results to sellers preasure pushing the EOS price downwards to point B at price $3.257. More sellers entered the market thus causing the market to become oversold again thus it is being pushed further to point C. If this continues in one month time, then the EOS price will continue to move upwards further.  

EOS bearish condition using RSI

EOS coin will be considered to be in a bearish condition when the candlesticks chart are moving in a downwards market direction. RSI indicator will help traders to know whether the market has become in an oversold market condition so that they exit for a shorter period of time and enter again when the oversold market condition is over. In oversold market condition, the RSI will fall below 30. This is indicated as from the EOS future market price analysis candlesticks chart from below;

    351665157-6ef102aed7a95c70d9454880c656c7f1aac610b423adce295693c2eaf9a0959d.png      

 

From the EOS future market price candlesticks chart above, there are three points, point A ,B and C. Initially as you can see, the EOS market has been in a bearish condition over a given period of time. At point A, the RSI falls below 30 thus signaling EOS traders that the sellers have exceeded the buyers thus possibility of it reversing back upwards. Most EOS traders who were selling their EOS coin then decided to buy them which results to buyers preasure pushing the EOS price upwards to point B at price $3.565. More buyers entered the market thus causing the market to become overbought again thus it is being pushed further to point C. If this continues in one month time, then the EOS price will continue to move downwards further.  

summary

  1. The more liquidity EOS coin becomes the more likely its price will continue to rise while the less liquidity it becomes the more likely its price will continue to decline
  2. An increase in the number of Dapps in the EOS platform will result to an increase in the price of EOS while a decrease in the number of Dapps in the EOS platform will result to a decrease in its price over time
  3. When more traders are buying the EOS coin, they are creating a downwards preasure thus causing its price to decline further so that the EOS makret can profit with a few number of sellers while when more traders are selling the EOS coin,they are creating an upwards preasure thus causing its price to incline further so that the EOS market can profit with few number of buyers


quintomudigo
quintomudigo

Trader, Blockchain Technologist and Contentpreneur. Also founder and CEO @ Teacher Forex School.


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