EOS (EOS) Technical Analysis: Survives Whiteblock Criticisms, Remains #1 on CCID Rankings, What Next?
EOS managed to fend off the bears this week after blockchain testing company Whiteblock heavily scrutinized the project for not being a blockchain, but a “homogeneous database management system”. Other criticisms included EOS having lower network throughput capabilities than its marketing materials implied along with zero Byzantine Fault Tolerance.
Despite these alleged findings, EOS was able to hold on to its number one spot in China’s latest Center for Information and Industry Development (CCID) crypto rankings; a league table put together by the China Electronic Information Industry Development Research Institute and the China Software Testing Center, which ranks crypto projects based on their technology and applications.
Right now, the asset is looking to close the day with a -1.6%(+/-) fall against BTC, performing within the same range as most other cryptocurrencies in the top 20 today. Will we ever see EOS return to its former glory, or will the asset continue to slide as bad press drives investors elsewhere? Let’s take a look.
On the 1D EOS/BTC chart, we can see that the asset has been consolidating inside a pennant for the past three months, after finding the bottom of a long bearish decline during mid-August.
Typically, when a price action enters into a trend pattern from the top it continues downward, when it enters from the bottom, it continues upward. In this case, EOS has entered the current triangle pattern from the top, so we assume the bears have an advantage over bullish traders. Sometimes, though, these patterns can signal a reversal if bulls are able to overcome the pattern resistance, but this usually takes a significant amount of buying pressure to do so.
Looking at a collection of indicators over 2hr candles, we can see that momentum is currently favoring the bears, as they aim to drive the asset down towards the lower support breakout point (shown above), somewhere around the 82,222 Sats mark.
-The indicator line on the RSI has deviated towards the oversold region below as selling momentum increased over the course of today’s intraday activity.
-The 12MA on the MACD indicator has bearishly diverged beneath the 26MA and is departing further away from the signal line above.
-The CMF is showing no clear increase in buying pressure over the short-term, with the indicator line oscillating way below the zero line.
-Candles have also fallen bearishly through the supporting kumo on the Ichimoku indicator accompanied by a bearish T/K divergence. Both of these are strong bearish reversal signals.
From this we should expect EOS to continue falling under the mounting selling pressure and attempt to find support along the aforementioned uptrending pennant level below. From here, we would like to see bulls attempt to push back and continue tracking inside the pennant pattern. If bears are able to overcome the lower pennant support, however, then we should expect EOS to plummet to its next main support levels around 76,600 and 73,800 Sats.
Summary of EOS Key Supports:
1: 82,222 Sats
2: 76,600 Sats
3: 73,800 Sats