EOS (EOS/USD) Price: Key Support Broken (Technical and Fundamental Analysis)

In the last 24 hours, the price of EOS has fallen below the two key support levels and is currently trading around 7$

As you can see from the daily chart below, both 7,35$ horizontal support was broken, and the baseline support which dates from the end of October last year when EOS was trading at 0,55$ and from there went on to increase by 3564% reaching 16$ at its first peak.

Analysis

Looking at the 4H chart we can see that the price of EOS is stuck in a range after a WXY correction occurred.

The price is currently sitting right on the 0 Fibonacci retracement level where it found support but for where the price is heading next we will further examine the range.

As you can see from the chart below I have labeled the range using Elliott Wave principles and it looks like this range is going to be another WXYXZ correction. At the moment the price is at the end of wave 5 which is the third wave from a minor WXY correction. There is still more room for decrease before a short-term recovery so I wouldn’t be surprised if the 0 Fibonacci level doesn’t hold.

If the 6,95$ level doesn’t hold the next support level on which the current wave 5 could end is at the prior low level at 6,58$. If we zoom into the hourly chart we can see that the price action has formed an expanding ending diagonal which mean that the completion of the wave 5 is soon to be expected and it looks like another low to around 6,65$ is a likely scenario.

After this current wave ends I am expecting a short-term recovery as wave Z should start developing and I have projected its target to be anywhere from 7,96$ where the blue resistance line from the triangle on the daily chart is to 8,93$ where the prior high level is but going that far would be highly unlikely although still valid.

Conclusion

As wave Z ends on the resistance line, a breakout from the range on the downside is to be expected, but we will see what happens when the price reaches those levels. If however, a breakout occurs, then things are not looking good for the price of EOS.

Market sentiment is bearish, as technical indicators on every time-frame are signaling a sell.

The first level I see holding the momentum behind the potential down move would be at 5,13$ and the one after that at 3,68$.

Charts are saying sell, but fundamentals are saying the opposite. As it can be seen on Blocktivity, EOSes blockchain is the most active one and by the outstanding lead:

The number of operations on the EOS blockchain in the last 24 hours is 7,927,544Op while the second Bitshares is at 4,682,446Op. For comparison, the number of operations on the Bitcoin’s blockchain in the last 24 hours is at 230,340Op.

This means that the EOS blockchain is the most used blockchain out there and use case and adoption are the factors that affect the price positively.

Maybe investors and traders are going to realize this fact and view EOSes price as highly undervalued and allocate their funds accordingly which will cause the price of EOS to rise up in evaluation again.