Since its all-time high on August 22, EOS has been steadily declining. The crypto market had crashed from March to June, but has since recovered. The market crisis has a lingering impact on modern investing.
Coingecko reports that the token’s value has increased by 0.2% in the last 24 hours. Even on shorter time intervals, like the week or the biweek, the currency rose in value.
Nonetheless, these changes have done little to slow the downward trend. Investors and traders in EOS, though, may have reason to be optimistic.
The Stress Of September
As this is being written, EOS is being propped up by the $1.0055 area, which has slowed its decline since last month. The current price movement of the token is being influenced by the ongoing downturn.
The right side of the right triangle acts as a liquidity pool, and this is reflected in the coin’s price action as a XABCD harmonic pattern. As investors and traders buy the dip, demand is introduced, and the trend may turn bullish as a result.
Chart: TradingView
Meanwhile, the technicals also appear to be lacking. The CMF is currently negative, indicating that bears are in control of the market. This provides an undeniably formidable counterbalance to the potential bullish movement.
Immediate resistance at the 61.80 Fibonacci retracement level will be a challenging barrier to overcome.
Not Looking Good?
EOS’s predicament does not bode favorably for the alternative cryptocurrency. However, investors and traders can leverage a rising RSI, which indicates increased investor optimism.
Chaikin’s money flow index indicates that the token is gaining ground. The bears were rejected at the $0.9422 price range, which fits with the emerging upswing.
As of the time of writing, the Stoch RSI is on the overbought side of the indicator, indicating that the developing rally will be met by a market correction.
The EOS token is an excellent investment for traders and investors seeking to diversify their portfolios. Just last month, the cryptocurrency exchange PayBito added EOS to its list of tradable tokens, expanding EOS’s reach.
Investors should also be aware of the impact of macroeconomic conditions on EOS prices. The correlation between EOS and Bitcoin is 0.77, indicating a significant effect on EOS price fluctuations.
EOS total market cap at $1.15 billion on the daily chart | Featured image from Investment U, Chart: TradingView.com Disclaimer: The analysis is based on the author's personal knowledge and should not be construed as investment advice.
Source: https://www.newsbtc.com/news/will-eos-downward-motion-hurt-its-coin/