EOS price prediction: Head and Shoulders Point to a Potential Reversal

Summary:

In this article, we explain why the EOS price has formed a head and shoulders pattern and what it means for traders. We also explain what to expect next

The EOS price has been on a strong recovery phase lately. It is trading at $7.14, which is about 60% above its lowest level last week. According to CoinMarketCap, EOS has a total market capitalization of more than $6.8 billion and is the 25th biggest cryptocurrency in the world.

What is EOS? EOS is a blockchain project that came online in 2018. The currency was launched when a Cayman Islands company called Block.one raised $4 billion, in what became the world’s biggest Initial Coin Offering (ICO). In 2019, the company paid $24 million to settle claims brought by the SEC, which said that its ICO violated security laws.

EOS is the native currency for what is known as EOSIO, which is basically an operating system that allows developers and companies to build decentralized apps. Some of the projects that are built on EOS are Voice, Chainflux, and OmniOne. Still, there are concerns about the low adoption rate for the network since many developers now prefer networks like Ethereum and Solana.

EOS price prediction

The daily chart shows that the EOS price has been on a strong upward trend lately. It has moved from the year-to-date low of $1.987 to a YTD high of $8.86. In the past few weeks, the currency has formed an ascending channel that is shown in green. Indeed, it has been rising above the lower side of this channel.

At the same time, the currency seems to be forming a head and shoulders pattern, which is usually a bearish sign. Therefore, in my view, I suspect that the currency will rise slightly as it forms the right shoulder and then retreat. However, the invalidation point for this prediction is if the price moves above $8.0 since it will have invalidated the head and shoulders pattern.

Please don’t consider this investment advice. Views expressed here are those of the writer and the writer will not be held liable for any losses.