It’s been nearly two months since EOS mainnet launched and the price is trading around 65% less than it was when launched. The overall market has been suffering some steep losses since then, but EOS has been underperforming the rest.
Two days ago was a perfect example. Bitcoin experienced a significant recovery amid the ongoing bloodbath, but EOS barely recorded a gain for the day. It has since priced in two consecutive marubozu candles and broke through the significant $5.5 support. A marubozu candle is a candle with a large body and little to no wicks. It represents strong movement in one direction. The daily RSI for EOS is currently in oversold territory, but amid strong downward movement, this is likely to have no effect.
Even in the case of a price rise, it looks unlikely that EOS will go far. It has been meeting strong resistance at the 50EMA, and the previous $5.5 support is now likely to turn into resistance. The next support level is around the $4.5 and with two Marubozu candles priced in, we look to be fast approaching it. Drops have also been on significant volume with gains on little in comparison.
- Strong bearish outlook with EOS underperforming peers
- Drops on substantial volume with gains on little in comparison
- Daily and hourly RSI’s in oversold territory but likely to have little to no effect amid strong bearish movements
- Two consecutive marubozu candles priced in on the daily
- Hourly 50EMA likely to be strong resistance in the event of a rise
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