EOS Price Analysis: Buyers Swoop in at $5, after Crashing Through Near-term Ascending Trend Line
- EOS buyers pile in to protect the $5 mark, after heavy selling pressure hit the market on Thursday.
- EOS blockchain activity remains dominant in comparison to its rival Ethereum.
The EOS (EOS) price has been able to find its feet, as buyers piled in at the $5 level. This comes after the chunky amount of downside pressure that hit on Thursday. EOS/USD was grinding higher, receiving support from an ascending trend line. Heavy pressure then rippled across the cryptocurrency market, consequently resulting in a breach. As a result, the trend line gave way at around $5.81, seeing a drop of around 13%, to a low of $4.9958.
EOS Blockchain Activity Remains Dominant
It is interesting to note that EOS activity across the blockchain community always maintain consistently high levels of usage, regularly outperforming a number of its big peers. According to the latest data provided by Bloktivity, EOS activity is seen at 1.69 million operations in the last 24 hours at the time of writing on Friday. Bloktivity believe that one way to consider a blockchain project is through its market cap. Another way, closer to the real value, is observing the activity on the blockchain. EOS has seen a 7-day average of 1.77 million, in comparison to its rival Ethereum, 539,000, with Bitcoin at 591,000.
Elsewhere, looking at statistics from dApp Radar, in a most recent report conducted, both EOS and Ethereum users reach an all-time high for daily users, over 65,000. Out of that figures, EOS heavily dwarfed its rival Ethereum. Reportedly seeing 51,000 for EOS and only 15,000 for Ethereum dApps.
Technical Review 4-hour Chart
EOS/USD, as mentioned earlier, has managed to see the downside pressure limited for now. The price received firm support, at the low printed on 25th September. It is worth of note, the last time EOS/USD fell to this level, it went on to rally some 20%. It ran firmly back into the $6 territory, as buyers returned. In terms of resistance, there are some barriers in the way of reclaiming that $6 mark again. A choppy amount of supply can be seen in the area tracking from, $5.30-5.50. Should bullish momentum sustain some dominance, then a retest of the broken ascending channel will likely be in focus, $5.85 area.
Looking to the downside, a demand zone is seen tracking from $5.10 down to the $5.00 area. Given the recent penetration of this area, a breach could see a fast fall south. Furthermore, the next zone of buying is seen back down at $4.60. EOS/USD having most recently used this area to find buyers on the 8th and 17th September.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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