EOS Price Analysis: EOS/USD might be headed towards $1.75 according to a descending triangle

EOS is currently inside a massive descending triangle pattern formed back in 2018.
The next likely target for EOS would be $1.75, the lower trendline of the triangle.

EOS is currently trading at $2.84 after a massive blow on September 3, followed by a bearish continuation on the next day. EOS dropped to $2.47 from $3.5 in less than 48 hours due to the entire crypto market's weakness.

However, EOS was the only one that managed to see a significant recovery, and it's, in fact, still up 8.6% in the past 24 hours. EOS has recently released a program offering bounties to discover issues and, more importantly, giving the community the chance to test the newly proposed EOS resource model.

Block producer engagement is critical; therefore, we invite block producer candidates to engage with the proposed resource model and provide the constructive feedback needed to make this project successful. We hope that, by including participation in this process of testing and feedback as part of our discretionary voting criteria, the proposal provides the intended long-term benefits.

EOS/USD daily chart

Unfortunately, the current bounce could very well be short-lived as a long-term descending triangle pattern is signaling that EOS could drop as low as $1.85 in the upcoming weeks. The triangle was established in 2018 and has formed a critical support level at $1.75.

It's important to note that a descending triangle is a bearish pattern and should eventually crack the support level at $1.75. Simultaneously, the $1.75 area seems quite robust and could help EOS bounce back up as the RSI would get quite overextended to the oversold zone. EOS would be facing strong resistance points at $3, $3.55, and $3,95, the high of the most recent rally.

Practically, all daily EMAs have been lost after the last crash, with the 12-EMA and the 26-EMA crossing bearishly and stopping the 100-EMA from crossing above the 200-EMA.

Is EOS hinting at a possible DeFi transition?

There is a small chance that EOS might be trying to enter the DeFi market. Just recently, Ivan on Tech had an interview with Dan Larimer, CTO of Block.one, involved in EOS development, talking about DeFi and EOS.

Further increasing the rumors, Brendan Blumer, CEO of Block.one, tweeted the following:

If you’re building #DeFi on #EOS and want to talk, or know of a project we should be looking at, reach out here or at [email protected]
— Brendan Blumer (@BrendanBlumer) September 1, 2020

We know DeFi projects are currently thriving, and EOS could very well take advantage of this market in the near future.

Share: Cryptos feed

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.