EOS Analysis: EOS Forecast, News & Trading Analysis

EOS Analysis: EOS Forecast, News & Trading Analysis

4 months ago

    31st May 2019

    EOS has gone up from $7.28 to $7.90, charting an 8.5% growth. This followed an extremely bearish Thursday wherein the price crashed from $8 to $7.29, which is an 8.85% drop. In today’s report, we will first look at the hottest news surrounding EOS which may have dictated this price flow. Following that, we are going to check out some technical analysis to gain a better understanding as to how the price is behaving in different time frames.

    Fundamental Analysis

    The news stories in focus are as follows:

    • Coinbase lists EOS.
    • Block.one’s EOSIO Labs release authenticator apps.
    • EOS overtakes Litecoin in market cap rankings.


    Coinbase lists EOS

    One of the largest crypto exchanges in the world, Coinbase announced via a blog post that they are going to be listing EOS. The San Francisco-based firm said:

    “Starting today, Coinbase supports EOS (EOS) at Coinbase.com and in the Coinbase Android and iOS apps. Coinbase customers can now buy, sell, convert, send, receive, or store EOS.

    EOS will be available for customers in most jurisdictions, but will not initially be available for residents of the United Kingdom or the state of New York. Additional jurisdictions may be added at a later date.”

    Normally, getting listed on an exchange like Coinbase would lead to a spike in price. Unfortunately, this news came around the time of the market crash, so the EOS’s price dropped instead of going up. Crypto trader Josh Rager lamented:

    “Dear $EOS,

    You were just added to Coinbase. This lack of price action is unacceptable.

    Regards,
    Your friends from CT”

    However, EOS has since recovered its price today.

    Block.one’s EOSIO Labs release authenticator apps

    Block.one’s EOSIO Labs released Reference Authenticator Apps for iOS and Chrome. Authenticators are tools that help enable two-step verification via the generation of a secret key for each user.

    According to EOSIO Labs, the newly implemented developments address improvements to the security, interoperability, and usability of authenticators by contributing working code and examples. Let’s take a closer look at the two authenticators:

    • EOSIO Reference iOS Authenticator App: Designed to help users sign in and approve transactions from web applications running in Safari (mobile version) and other iOS-based apps.
    • EOSIO Reference Chrome Extension Authenticator: Allows users to sign in and approve transactions from web apps running in Google Chrome. The key management and signing takes place in a Chrome extension and is secured by a passcode.

    EOS overtakes Litecoin

    Over the last five days, EOS outperformed Litecoin and managed to overtake in the market cap ratings. Here is a May 26th screenshot of coinmarketcap:

    As you can see, Litecoin is ranked above EOS, having ~$590 million extra in market cap. However, this what the rankings look like now:

    EOS is in 5th place and has a ~$328 million lead over 6th place Litecoin.

    Technical Analysis

    For our technical analysis, we will be using Trading View’s charts. We will be looking at the following price charts:

    • Daily.
    • Weekly.
    • Monthly.
    • 4-Hour.
    • 2-Hour.
    • 1-Hour.

    EOS/USD daily chart

    • The weekly EOS/USD chart shows that the price has been trending upwards in a channel formation.
    • Three weeks back, the price broke past the resistance offered by the downward trending line.
    • Over this week, EOS/USD has gone up by 13.25% as the price went from $6.95 to $7.89.
    • The Elliot oscillator shows eight consecutive bullish sessions with increasing intensity.


    EOS/USD weekly chart

    • The weekly EOS/USD chart shows that the price has been trending upwards in a channel formation.
    • Three weeks back, the price broke past the resistance offered by the downward trending line.
    • Over this week, EOS/USD has gone up by 13.25% as the price went from $6.95 to $7.89.
    • The Elliot oscillator shows eight consecutive bullish sessions with increasing intensity.

    EOS/USD monthly chart

    • The monthly price is trending upwards in a channel formation.
    • EOS has had four straight bullish months following, nine straight bullish months.
    • Over this month, EOS has gone up from $5.06 to $7.89, charting a staggering 56% increase in price.

    EOS/USD 4-hour chart

    • The 4-hour market is trending above the green cloud of the Ichimoku indicator (20/60/120/30).
    • Towards the end of yesterday’s session, the market crashed below the support provided by the SMA 20 curve and went down to $7.29 after failing at the $8.35 resistance level.
    • The market then found support at the upward trending line and went back up.
    • The two latest sessions broke past resistance levels at $7.45 and $7.78.
    • The Elliot oscillator shows decreasing bullish intensity.
    • In the MACD indicator, the signal line has taken a turn and is looking to converge with the MACD line, showing decreasing bearish momentum.
    • The 4-hour market currently finds immediate resistance at the SMA 20 curve.

    EOS/USD 2-hour chart

    • Towards the end of Thursday, the hourly price went below the lower curve of the 20-day Bollinger band, indicating that it was undervalued.
    • Since then, the bulls came back and the took the price back into the Bollinger band.
    • The price trended horizontally for a while before the price had a bullish breakout and breached resistance at $7.46.
    • Then the price shot past the resistance provided by the SMA 50 curve. The bears tried to correct the price but it found support on SMA 50.
    • The SMA 50 has crossed over the SMA 20, which is a bearish pattern.

    EOS/USD 1-hour chart

    • The 1-hour price was trending horizontally around the $7.39 level before it had a bullish breakout.
    • The price ran through resistance levels at $7.65 and $7.75 before it started consolidating.
    • In the latest session, the bears took down the price to $7.76.
    • The price is trending within the green cloud of the Ichimoku indicator.
    • The Elliot oscillator has had three bullish sessions following 20 straight bearish sessions.
    • The MACD indicator has had six straight bullish sessions.
    • The relative strength index (RSI) indicator is trending at 53.90.

    Future Behaviour

    After Thursday’s price drop, the market has managed to make some recovery today. With the Coinbase listing and the huge B1 event tomorrow (read below to know more about it), don’t be surprised with further positive price action. Having said that, as we found out yesterday, EOS (and all other cryptocurrencies) is subject to market behavior. The price is going through a slight bearish correction, but the overall long-term sentiment remains bullish.

    EOS Analysis Conclusion: 31st May 2019.

    28th May 2019

    EOS has been on a tear for the last three days. The bulls have put the price up from $6.35 to $7.94, charting a 25% rise in price, making it one of the top performing coins in the market. So, what triggered this dramatic spike? Let’s look at both fundamental and technical analysis to gain further understanding.

    EOS Fundamental Analysis

    The news stories in focus are as follows:

    • Upcoming B1 event.
    • EOS maintaining top position in CCID’s rankings.
    • Block.One buying back share


    Upcoming B1 event

    All eyes are on Washington, for the big EOS event, called B1, on June 1. The EOS community is expecting some major announcements that day, such as:

    • An updated roadmap.
    • A yearly product release cycle.
    • A social media dApp.

    To expand on the last point, B1 has registered the trademarks, MEOS and XEOS. Part of the description of the trademark says:

    “..providing temporary use of non-downloadable web and mobile application software for virtual community, social networking, photo sharing, electronic media sharing, and encrypted or otherwise secured messaging and media transmission; computer services, namely, creating online virtual communities for users to organize groups and events, participate in discussions, and engage in social, business, and community networking.”

    To give further fuel to the fire, it seems that Block.one spent more than $25 million on RAM from their official B1 account. Rob Finch tweeted:

    “BREAKING NEWS: @block_one_ has purchased 3,300,000 EOS ($25,000,000) worth of RAM on the #EOS mainnet from their official B1 account. #B1June is heating up!

    NOTE: once RAM is purchased, it cannot be used to create new accounts. The RAM for a new account is purchased at the time of account creation. This is for something BIG! 🚀 #B1June #EOS.”

    If the social media platform does launch, then it will spike EOS’ price even further.


    EOS maintains top position in CCID rankings

    The Chinese Center for Information and Industry Development (CCID) recently updated its crypto ranking list, wherein EOS retained their top spot. CCID is a scientific research institution backed by China’s Ministry for Industry and Information Technology. EOS is followed by Tron (TRX), Ethereum (ETH), Steem (STEEM) and Ontology (ONT). EOS has kept its top position since June 2018.

    CCID stated:

    “The results show that the world’s three major Dapp platforms —EOS, Tron, and Ethereum — remain ranked in the top three, [and] the scores are 148.5, 144.1 and 136.6.”

    The rankings were based on the following criteria:

    • Technology.
    • Application.
    • Innovation.

    The rankings used to be updated, but it will now be updated one every two months. CCID added:

    “The result of this assessment will allow the CCID group to provide better technical consulting services for government agencies, business enterprises, research institutes, and technology developers.”

    Back in November 2018, when EOS retained its top spot and Ethereum was runners-up, the CCID analysts had said:

    “At present, EOS and Ethereum are undoubtedly the preferred platforms for Dapp development worldwide, and EOS is showing a stronger momentum. The data shows that EOS Dapp is highly active and user increments are large.”


    Block.One buys back shares

    Block.One is planning to buy back 10% of its shares from early investors. In the process, the earliest backers will get a 6,567% ROI in less than three years. Folks like Peter Thiel, Alan Howard, and Louis Bacon are included in the list of investors. The firm is offering $1,500 for each share compared to the seed round pricing of $22.50.

    Regarding the buybacks, a spokesperson of EOS said:

    “Buybacks are a normal activity for many companies. Block one is confident of its growth prospects and industry opportunities. We are pleased with the support from investors, and that they have been able to benefit from, and participate in, the success of our company.”

    Mike Novogratz’s Galaxy Digital has sold most of its share in Block.One, receiving a $71.2 million payday which amounts to a 123% gain on its initial investment. As per Novogratz:

    “The acceptance of Block.one’s tender offer reflected a decision to rebalance the portfolio to maintain an appropriate level of diversification after the position increased due to its substantial outperformance relative to the remainder of the portfolio.”

    Christian Angermayer, on the other hand, told Bloomberg that he wouldn’t be selling his shares. He said:

    “Block.one is one of the most promising and best-positioned companies in the blockchain industry, and its success story is just beginning.”

    EOS Technical Analysis

    For our technical analysis, we will be using Trading View’s charts. We will be looking at the following price charts:

    • Daily.
    • Weekly.
    • Monthly.
    • 4-Hour.
    • 2-Hour.
    • 1-Hour.


    EOS/USD daily chart

    • This Tuesday, the price of EOS fell from $8.07 to $7.94, charting a 1.6% decrease in value.
    • This Monday’s session saw the price go over the upper curve of the 20-day Bollinger band, making it overvalued. So, this
    • Tuesday, the price corrected itself.
    • The widening of the 20-day Bollinger band shows that the market volatility is increasing.
    • The nearest support level on the downside lies at $7.75.
    • The relative strength index (RSI) indicator is trending at 73.36, which means it is in the overbought zone.
    • The 200-day simple moving average (SMA 200) curve has turned bullish.


    EOS/USD weekly chart

    • EOS has had five bullish weeks in a row. The price is currently trending in an upwards channel formation.
    • Over the last three weeks, the price of EOS has gone from $5.40 to $7.94, charting a 46% increase in price.
    • The Elliot wave oscillator has had eight straight bullish sessions in a row


    EOS/USD monthly chart

    • EOS/USD has now managed to string together four consecutive bullish months after nine straight bearish months.
    • May has been the most bullish month for EOS since April 2018.
    • Throughout April, the price has gone up from $5.06 to $7.87.


    EOS/USD 4-hour chart

    • The two sessions in the 4-hour EOS/USD chart forms a bearish engulfing pattern.
    • The bulls failed at the $8.15 resistance level and the price immediately crashed down.
    • The SMA 200, SMA 100, SMA 50, and SMA 20 curves have all turned bullish.
    • The market is trending above the green cloud of the Ichimoku indicator (20/60/120/30).
    • The signal line is looking to converge with the moving average convergence/divergence (MACD) line indicating decreasing bullish momentum.


    EOS/USD 2-hour chart

    • The hourly EOS price spiked above the 20-day Bollinger band before the bears corrected it immediately.
    • After that, the price trended in a downwards channel before charting an evening star pattern.
    • Following that, the bulls have restarted their attempt to increase the price.
    • The Elliot wave oscillator shows that despite bearish price consolidations, the overall market sentiment is bullish.


    EOS/USD 1-hour chart

    • The hourly EOS/USD chart makes for interesting reading. As can be seen, by the rectangles, the hourly chart has faced multiple bullish breakouts followed by price consolidation.
    • Currently, the bears and bulls are engaged in a tug-of-war with the bears edging out.
    • The SMA 20 curve is now trending near the price and is acting as immediate support.
    • The market is trending above the green cloud of the Ichimoku indicator.
    • The signal line is diverging away from the MACD line indicating increasing bearish momentum.

    EOS Future Behaviour

    According to technical analysis, it looks like a short-term price correction may be on the horizon. However, if you are an EOS holder then you should expect a price rally till the B1 event which will happen on 1st June and then a further price spike, depending on how well the event and its outcomes are received. If you are an EOS holder then you should expect some exciting times ahead.

    EOS Analysis Conclusion: 28th May 2019.

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