Whether EOS is leading the market or not is just but speculations based on historical prices. We need directions from market participants. As it is, buyers seem to be making a turn around despite yesterday’s candlestick characteristic. EOS is up six percent in the last 24 hours with interesting technical developments panning out in the daily chart.
From the News
Just to clarify, Block One is a software company that is behind EOSIO-and not the other way! By now you might have read somewhere that EOSIO will be “migrating” from the Ethereum blockchain to their brand new blockchain. Yes, investors are super excited especially with the prospects of “free” transactions and the fact that more and more companies have plans on launching on the platform (software)-we are yet to know. That not only means demand but it’s a bit subtle statement of acceptance and confidence from third party companies. It’s really a go ahead for Dan and his crew.
And indeed it is a go ahead all happening at a time when Dan Larimer and Vitalik have all but agreed to work together for the sake of this nascent technology. Of course, Vitalik input in this sphere is all crucial. I mean, he’s just but a teenager but most see him as Einstein in these streets. A genius behind EVM and smart contracts, so, this to me is important.
As we can see, prices are picking up not only from a top down approach but the fact that sentiment is beginning to change. Statistics shows that EOS is up six percent in the last 24 hours and the cool thing is that history labels EOS a market leader.
EOS Technical Analysis
In our analysis, week ending April 29 is of significance. Yes, it’s a strong bullish bar and behind it was a push for demand thrusting above the main resistance line at around $18.5. Remember, this was happening at a time when EOS mainnet launch news was just picking up attracting investors.
Considering the prevailing sentiment, I can confidently day that this is a long covering and sooner or later, we shall see recovery of prices as buyers recoup the current 26 percent devaluation. Besides the strong up thrust, do you notice that the past three weekly candlesticks have long lower wicks? These are pointers of strength happening coincidentally with lack of market participation. Volumes are declining as EOS buyers cover their position.
Note the difference between May 15 and 16 candlesticks. Both are bearish but there are relatively high volumes on May 16 and instead of collapsing below $13, prices remained put. That’s not all. It has this long lower wick meaning buy pressure is high. It’s the confirmation, the follow through that is important.
That did happen yesterday and what we now have is a 3-bar reversal candlestick turning from a region of support or December 17 highs resistance. Going forward, I recommend buys at every under valuation in lower time frames with stops at $11.50. Ideal buy targets should be at Week ending April 29 highs at $23.
Photo via Pixabay.