Our last EOS price prediction has played out exactly as predicted. The price not just met our bullish target of $1.74 but went above it to tag the $1.94 region. However, the EOS coin is struggling to stay above the 200-day moving average and has broken below it.
A major reason behind the ongoing correction is the negative Bitcoin price action following a hawkish speech from Jerome Powell. Crypto markets remained highly volatile on Thursday in anticipation of the FED Chair’s remarks. Consequently, many analysts are now predicting another 50 to 75 basis points rate hike in September.
Currently, the EOS price is trading at $1.61 after losing 6.8% during Thursday’s trading session. On the higher timeframe, the coin is still 93% down from its 2018 all-time high of $22.71. While many older altcoins went ballistic during the 2021 bull run, EOS failed to make a new ATH due to the lack of network development and on-chain activity.
According to EOS news, the federal court has rejected the $27.5 million class action lawsuit against Block One, questioning the reach of US securities law. The news gave the cryptocurrency enough hype to pump by more than 50% within 2 weeks.
A look at the EOS crypto chart shows that the price broke out of the downwards trendline at the end of July. However, the price failed to gain any momentum until the news of the settlement being rejected came to light. The price immediately soared after the news, fuelled by a sudden increase in volume.
The EOS price prediction would become very bullish if the price gains acceptance above the 200-day MA. If the price closed below this MA, then the $1.52 region would become very critical. This region comes into play by the confluence of the 0.382 Fib level and a fair value gap. A strong bounce is expected from this region. In the event of a breakdown below this level, our price analysis would be invalidated.
This post was last modified on Aug 26, 2022, 20:52 BST 20:52