EOS Price Analysis: EOS fails to capitalize on its entry into the DeFi space
|- EOS is currently trading at $2.74 after losing practically all its gains from the small-crypto rally.
- EOS price has dropped to the lows of May and seems unable to recover.
Like the rest of the market, EOS had a fantastic bull rally from its low on March to a high of $3.94 in August, a 194% price increase. Unfortunately, the digital asset is already down 30% from the peak and has dropped to the same price levels from April until July.
BNB's entry into the DeFi market was clearly highly successful after a massive breakout above $26 and a peak of $33.38, hitting a new 2020-high. BNB blasted through all the resistance levels after several announcements from Binance, including the new LaunchPool, or BSwap, a new trading platform that allows users to pool tokens for easy earning.
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Similarly, the entry of TRX in the DeFi space boosted TRON's price significantly, outperforming major coins while the entire market was going down. Even NEO had a successful entry with a notable increase in value. EOS (green line) is clearly underperforming and in fact, still going down while BNB, NEO, and TRX are going up.
EOS/USD 4-hour chart
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EOS price seems to have established a strong support level at $2.65 but fails to create clear higher lows and higher highs. According to the chart, EOS is currently in a downtrend and will need to climb above $2.84, the high of September 11 to shift the momentum towards the bulls.
If somehow EOS manages to crack $2.84, it could rally up towards $3.03, the next resistance level. Before that, bulls need to push the price above $2.76, the 50-SMA which has been acting as a resistance point for quite some time now. On the other hand, if bears can break $2.65, EOS will be in free fall until $2.49, the absolute last support level in the short-term. Additionally, a descending triangle has been forming on the higher time frames which could lead to a retest if the x-axis of the triangle at around $1.75-1.85.
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