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
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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.
Author
Lorenzo Stroe
Independent Analyst
Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.
