EOS might see all of its gains erased if downward pressure continues to build. This was after the stock soared to a 52-week high of $14.88.
The EOS price reached $14.88 on May 12, marking its highest level this year and a 52-week high. The coin’s performance mirrored that of the larger market during this period of bullishness.
On the other hand, EOS’s value dropped to $3.07 on June 22. This reflected the turbulence in the broader market once more.
As of this writing, EOS is trading at $3.69 per dollar against the United States dollar. Its value dropped by 7 percent in the last 24 hours and by 10 percent in the previous seven days. As a result of yesterday’s breakdown, EOS is now vulnerable to further losses. Consequently, its current price went almost 83 percent below the all-time high of $22.71 hit on April 29, 2018.
EOS is the 28th most valuable cryptocurrency in terms of market capitalization. Its $3.5 billion valuation places it behind Monero (XMR), valued at $3.7 billion. However, it is ahead of Shiba Inu (SHIB), which values at $3.2 billion.
EOS’s Value Expected to Rise
Block.one, an EOS developer, reported on June 25 that it had paid a contractor 83,000 EOS (about $330k) in EOS. Over the course of two days, the price of EOS fell by over 15 percent, from $4.02 to $3.39.
On July 1, the American CryptoFed DAO became the first decentralized autonomous organization (DAO) to be legally recognized in the United States. It did so by utilizing the EOS platform for its two-token economy. EOS price rose beyond $4.00 due to the market reaction. However, weakness across the board caused the rally to fade near $4.31.
It can be observed that the price has followed a bullish trend line. On the other hand, Bears have broken through the support line in the last several hours, threatening additional losses.
On the 4-hour chart, the Relative Strength Index (RSI) is below the equilibrium point, indicating that bears control the market. EOS/USD is trading far below the 50-day simple moving average ($3.93) and the 20-day exponential moving average ($3.87), with the moving averages’ curves indicating that the price is weakening.
Given the significant resistance, purchasers are encountering around $3.80, price action over the next several hours or days could prolong the downward trend in the stock. The possibility of EOS retesting its recent lows under $3.00 exists if bulls allow prices to go below the support line of the descending parallel channel.
On the contrary, a solid bounce to the 20-day exponential moving average and the 50-day simple moving average could allow bulls to attempt a breakthrough to $4.00-$4.50 or higher.
