Technical Analysis and Market Entry: EOS/USD Has Room For Greater Upside Momentum As Bulls Make Critical Advance

  • EOS/USD bulls have regathered some upside momentum, following the pressure in the second half of 2019.
  • Further moves to the north are eyed, given a breakout of a bearish market structure. 

EOS/USD: Recent Price Behaviour

The EOS price has managed to regather upside momentum within recent trading, following the heavy selling pressure through the second half of 2019. EOS/USD bottomed out down at the depressed levels of $2.15 on 18 December. The buyers came into effect within this area of demand, $2.50-2.00, which had been supporting the price last year.

During the decline of EOS/USD from 31 May 2019, the price lost as much as 75%. It fell from the heights of $8.95 down to $2.15 as noted above. The trend was stubborn to the downside, with any rallies proving to be short-lived. In terms of the market structure, it was producing lower highs and lower lows.

Given the most recent bout of upside momentum, EOS/USD has been able to gain as much as 85%. The price is moving back to the highest levels seen since September 2019. A critical technical development to note is that the bulls may have voided the market structure as earlier described. A break above the prior high area at $3.65 has been observed, with the price hitting $4.00 on 15 January.

EOS/USD daily chart. 2.0 Released

Block.One, blockchain software development firm has released 2.0, which is the software underlying the EOS blockchain. The company posted a blog update and tweeted that the update makes the blockchain “faster, simpler, and even more secure.”

The official blog post on the new software detailed that it includes a purpose-built WebAssembly (WASM) engine on which the EOS smart contracts run. In terms of WASM, according to its website, it is an instruction format designed for deployment on the web and servers.

Changes are anticipated to see improvement in the performance of smart contract execution, given that it is supposedly up to 16 times faster than the engine used in the previous version.

This update also sees the introduction of WebAuthn support. According to the official website, WebAuthn is a web authentication standard based around public-key cryptography. The blog goes in detail about how EOS developers could use this standard:

“With this release of WebAuthn support for EOSIO, developers can begin testing transaction signing with WebAuthn in their EOSIO applications.”

Trade Recommendation

EOS/USD was previously being contained by a descending trend line, which had been in play from 12 July up to a breakout on 12 January. Given the break above, it has made room for further upside pressure. There are two areas for potential entries; upon a retest of the noted trend line at $3.00. The other would be once the price breaks and retests the zone of $3.60-4.05. In terms of targets; $4.50, $5.50 and then $6.00 near-term. Stops on the first entry to be placed at $2.50, the second entry stop would be $3.45.

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.

Featured image courtesy of Shutterstock.

Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.