EOS Price Analysis – 25th February 2021

The EOS market cap currently stands at US$3.7 billion with US$1.5 billion in trade volume over the past 24 hours. EOS is ranked 24th on the Brave New Coin market cap table. The EOS price is down 19.3% in the last 7 days.

About EOS

The EOS (EOS) platform, created by Block.One, is a global computing network designed to host decentralized applications (Dapps), and decentralized autonomous corporations (DACs). The EOS network hosts smart contracts on Virtual Machines and competes with other Dapp or smart contract platform blockchains, including Ethereum (ETH), Tronix (TRX), and NEO (NEO). The ETH and NEO platforms use gas to pay for units of computing power while EOS uses RAM.

The EOS blockchain went live on June 14th, 2018, after raising ~US$4.2 billion in a controversial year-long ICO. The EOS blockchain uses a Delegated Proof of Stake (DPoS) consensus model. Other iterations of DPoS are currently being used by BitShares (BTS) and Steemit (STEEM), two of EOS founder Dan Larimer’s previous projects, as well as Lisk (LSK), Ark (ARK), and Tezos (XTZ). In a surprise move, Larimer announced on January 11th that he had left the project on December 31st. The EOS price is down around 2% in the time since the announcement. Over the same period the Bitcoin price is up 23%.

Technical Analysis

Roadmaps for future market movements can be found on high timeframes using Exponential Moving Averages, Volume Profile Visible Range, Pivot Points, Ichimoku Cloud, and divergences. Further background information on the technical analysis discussed below can be found here.

Watch full EOS Technical Analysis on YouTube

• On the daily chart for EOS/USD, the 50-day and 200-day Exponential Moving Average (EMA) bullishly crossed on February 1st. The Volume Profile of the Visible Range shows support at US$2.75 and resistance at US$3.70 and US$5.50. Yearly pivots also show resistance at US$4.93 and US$7.26. Additionally, there are no bullish or bearish divergences on volume or RSI at this time.

• Bitfinex open interest is currently 99% long, with long interest increasing over the past month and short interest slightly increasing over the same time period (top panel, chart below). The June 2019 reduction in short interest mirrors a reduction in short interest on Bitfinex for BTC on the same day. A significant price movement downwards will result in an exaggerated move as the long positions begin to unwind. This is known as a “long squeeze”.

• The current spot price appears to have invalidated a bearish Pitchfork (PF) with anchor points in December 2017, and March and April 2018. Price has resided in the upper half of the PF since March 2019. The spot price has exceeded the upper diagonal of PF for 54 days, likely invalidating the nearly 1,000-day downtrend.

• Turning to the Ichimoku Cloud, four metrics are used to determine if a trend exists; the current price in relation to the Cloud, the color of the Cloud (red for bearish, green for bullish), the Tenkan (T) and Kijun (K) cross, and the Lagging Span. The best entry always occurs when most of the signals flip from bearish to bullish, or vice versa.

• Three-day Cloud metrics, with doubled settings (20/60/120/30), for more accurate signals, are bullish; the spot price is above the Cloud, the Cloud is bullish, the TK cross is bullish, and the Lagging Span is above the Cloud and above the current spot price. The trend will remain bullish so long as the spot price remains below the Cloud, currently at US$3.15.

• Both the EOS/BTC and EOS/ETH pairs show strong bearish trend metrics with prices at or near all-time lows. A remote possibility for both pairs is a mean reversion to the respective 200-day moving averages, but even more likely, consolidation at current lows or bearish continuation. AOn Bitfinex, EOS/BTC open interest remains 77% short.