The EOS price has given back almost all of the gains made in 2021. Despite this, I’m still staying away from the unloved cryptocurrency.
Eos (EOS) is trading lower at $3.158 (-2.00%) in early Asian Wednesday, extending the decline in December to -20%. Subsequently, EOS is down 80% from 2021’s high and 90% below the 2018 all-time high. The former blue-chip coin’s market cap has dropped to just over $3 billion, which sees it languishing below Helium as the 53rd most-valuable cryptocurrency.
The writing was on the wall for EOS long before Bitcoin crashed from its all-time high. The coin has consistently struggled to replicate the form it saw earlier during the first altcoin season earlier in the year. Following the crypto crash in May, aside from the strength in Q3, the direction has been sideways to lower for the last seven months. As a result, investors have shunned Eos in favour of new projects. But despite the coins low price, it’s challenging to build a sustainable bullish case, considering the coin failed to ignite in November when the crypto market reached a record $3 trillion valuation.
The daily chart highlights the disastrous Eos price action since May. During Saturday’s crypto meltdown, the coin traded close to its lowest price this year. However, cryptos have turned higher in the last couple of day’s following Bitcoin’s bounce to $52k, helping EOZ off the lows.
In my opinion, the crypto market has not fully recovered from Saturday’s crash. In my experience, heavy sell-offs cause structural damage, often resulting in violent aftershocks. Therefore, I believe BTC could succumb to more selling pressure in the next few days, and the EOS price is likely to revisit Saturday’s $2.320 low if that happens. Furthermore, a close below $2.320 could push the coin below $2.000 for the first time in a year.
On the other hand, If I’m wrong, Eos may extend towards the 100 and 200-Day Moving Averages, just above $4.510. However, the downside should prevail if the price remains below the long-term indicators. Therefore a close above the 200-DMA at $4.564 invalidates the bearish view.
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This post was last modified on %s = human-readable time difference 05:38