EOS Price Analysis: EOS/USD in Danger of Moving Back to $1 Territory, Despite Dominating Tron in DApps
- The EOS price is trading down some 3% in the early part of trading on Wednesday.
- The EOS/USD daily chart view can see somewhat of a bearish flag formation, subject to an extended breakout south.
Recent Price Behavior
The EOS price on Wednesday is seen nursing some sizable losses of 3% at the time of writing. EOS/USD is currently stuck between a tough acting area of supply and a comfortable demand zone. It is being forced to range-trade, which has been the case since 11th January. The high of the range is noted at $2.60, with the low down at $2.19.
This is the tightest and longest range that EOS/USD has traded within since October 2018. The previous range stretched between 16th October to 5th November 2018, and came just before the heavy bear market of mid-November.
EOS Dominating Tron in DApps
EOS is pushing ahead of the Tron network with regards to dApps usage, according to a recent report produced by Weiss Ratings. Tron has been known to dominate within this field, given its exponential growth and being able to maintain that pace. However, numbers certainly do not lie in terms of the EOS dominance of late.
Weiss Ratings pointed out that, “EOS has a dApp called Dice, and it’s beating another dApp, TronBet by about 60% in volume and 30% in transactions. People shilling Tron need to understand that EOS is still way ahead.”
Ethereum Falls Out of the DApps Competition
The interesting point, above all noted, is that Ethereum is now out of the picture. In an area where the network once heavily dominated, Ethereum is just now nowhere to be seen. Ethereum did have a chunky presence back in 2017 with regards to DApps, however there is much fiercer competition now, as clearly detailed above.
Technical Review – EOS/USD
In terms of the technical outlook, it does appear to be stacked in the market bears’ favor for now. Price action via the daily chart view has formed somewhat or a bearish flag formation. This comes after the heavy drop on 10th January, when EOS/USD started to then move into a range-bound formation. However, this price behavior formed this flag, which is subject to an extended breakout to the downside.
A breach of the lower demand area, $2.30-$2.19, will likely invite a fresh wave of selling pressure. Eyes would ultimately be on a retest of the December low area, $1.85, down to $1.55, the low from 7th December.
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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