EOS Price Triangle Pattern Points to a Drop Below $4

Summary:
• What is the outlook of the EOS price? We explain why the triangle pattern points that the coin will fall below $4 soon.

The EOS price has consolidated in the past few weeks as investors wait for a catalyst. The token’s price is trading at $4.15, where it has been in the past few weeks. This price is about 71% below its highest level this year while its market cap has dropped to about $4 billion.

EOS has had a rough time ever since the CEO of the EOS Foundation openly said that the project was a failure. He blamed Block.one for the lack of user adoption and growth for the ecosystem. Block.one responded by releasing 45 million EOS tokens to Helios. At the current price, these tokens are worth more than $180 million.

Meanwhile, EOS price has struggled as investors focus on other areas of blockchain. Among the fastest-growing ones are metaverse, where key projects like Enjin Token and Immutable X have rallied. Similarly, there has been interest in high-flying Ethereum-killers like Avalanche and Solana. Therefore, investors are likely waiting for a catalyst that will propel EOS higher.

EOS price prediction

On the daily chart, we see that EOS has been in a tight range in the past few weeks. As a result, the Bollinger Bands width has declined while the price is at the same level as the 25-day moving average. 

A closer look shows that the price has formed a triangle pattern. This symmetrical triangle is closely moving to its convergence level. Also, another look that there is a buildup happening near the lower side of the triangle. 

Therefore, while it is too early to tell, there is a likelihood that the price will have a bearish breakout in the near term. If this happens, the coin will likely drop to below $4.