EOS Technical Analysis: Bullish and Bearish Count Still in Play
EOS has been trading within a range of $4.91-$4.28 for the last 3 days. The $4.57 support has been broken and price seems to want to test $4.28. If that support breaks, I believe it MAY be a quick drop to $4.00.
As I said yesterday, we’re seeing a lot of structure in the market from a bullish and bearish perspective. I discuss that in detail in the video analysis below.
My bullish scenario is still very much in play. Since yesterday, price seems to have almost completed an ABC correction. If this count is correct, we can expect the start of 5 waves up very shortly. Here’s how it might play out.
From an bearish perspective, we could say price has completed wave 2, and is now beginning wave 3. If this count is correct, it might play out like this:
In today’s video analysis, I discuss short and long term price movement, various scenarios to watch out for and MUCH more. If you’re not watching my videos, you’re only getting a small part of the story.
Video Analysis:
If you’re viewing this on a site other than Steemit, and you don’t see the above video, navigate to Steemit or TIMM (https://mentormarket.io/profile/@workin2005?aff_id=Workin2005) in order to watch.
BIAS:
Short Term: Neutral
Longterm: Bullish
I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Until next time, wishing you safe and profitable trading!
Workin
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by Workin2005
Interesting that your view on EOS is bullish long term... what do you see in this project?
Unlimited scalability, speed that's thousands of times faster than ETH, zero transfer fees, potentially endless dividends in the form of airdrops....I could go on and on. Yes, many of those airdrops may end up being worthless, but what if just a few make it big?
The below video explains the potential of EOS in a little more detail. This guy bet $1 Million that EOS would reach $1K by years end. Now he's going to likely lose that bet. Timing in crypto is nearly impossible to predict. That said, his reasons for believing in the project are solid in my opinion. Is EOS a guarantee? Of course not. As with all things...only time will tell.
Here's the video if you're interested:
I've watched the video and I am confused, maybe you can clear it up for me:
Why would new projects airdrop their EOS tokens then go on to buy tokens on the main-net for bandwidth? Isn't airdropping your coins akin to forking the network by implementing your own EOS platform where bandwidth can only be purchased with the new tokens?
To add to that, there is clearly a lot of shadiness going on on the main chain (BPs voting for each others leading to a ever growing concentration of voting power in the hand of a few powerful BP) so there is an incentive to move away from the main chain and implement your own, so here again value is not likely to accrue to the main chain but rather to spread over multiple new EOS implementations with better distribution (like this new chain which name escapes me);
Third, there is no mention of inflation (up to 5%/yearly) which will certainly counterbalance the demand for tokens to pay for bandwidth.
So yeah, this video raised more questions that it answered.
Any thoughts?
Hey my friend. Good questions all. I don't claim to be an expert on all things EOS, but I'll answer them the best I can. For further explanation, I'd talk to and read @conceptskip. He's answered everything EOS.
To start, I think you're confusing airdrops on the EOS mainnet with forking the mainnet. The airdrops aren't forks, but projects that will be launched on the EOS mainnet itself. Those projects will have to buy RAM and lock up their tokens. The more successful the project, the more RAM they'll need and the more EOS tokens get locked up. There's also a transfer fee that's charged each time anyone buys RAM. This fee gets locked up and may even be burned...although that has not been voted on yet. The point is, those tokens will be out of circulation.
As far as the actual forking of the mainnet itself, yes, there have been people talking about it long before the mainnet was launched. And why not? It's easy money...like Bitcoin Diamond, Bitcoin Gold, bitcoin cash etc... But those are actual forks. They shouldn’t be confused with the typical mainnet airdrops.
Those forking say they're angry about some constitutional issues, procedural issues, etc. I think this is VERY healthy and WELCOME the competition. Without competition, there’s no incentive to create quality. That said, I don't think the forks will come close to the longterm success of EOS, but they will help keep EOS honest…or as honest as any entity of human beings can be.
The beauty of EOS is, if something isn’t working, it can and will change in a heartbeat. That's how and why it was built. Remember, this is ALL uncharted territory. Things that sound good, don't always work out in the real world. What I love about EOS is, they knew that from the beginning. It was built to run a marathon...not a sprint. The launch was hardly smooth. That said, they have the money, community, product, team and backing to pivot on a dime and go the distance.
As far as some BP voting for others, yes. That’s happened and the community called them out. Dan has addressed this recently. He’s discussed possibly putting part of the governance system on the smart contract rather than the overall system. We’ll see how it gets worked out…but I do believe it will. Again, the EOS model was built to change when something isn’t working.
As far as inflation, as you said, it’s UP TO 5%. That means it could be 0% or 5% or anything in between. It’s meant as a temporary measure to lower the cost of creating DAPPs. Once the ecosystem is functioning, the inflation rate will likely go away. It’s also greatly off set by the RAM transfer fees I mentioned above. Further more, 80% of the tokens created from inflation get used for DAPPS or locked up (which means they’re out of circulation). It’s not like they just dump them on exchanges. Any unused tokens will likely be burned or used to lower the following years inflation rate.
Hope this helps answer some of your questions. EOS isn’t perfect…nothing is. But I do believe it has a bright future. As with all things…time will tell.
Thanks a lot for the shoutout @workin2005 and for the flowers, actually you answered already quite comprehensively, but i give it a try to make a few additions.
My pleasure...and thanks for the response
Hey @workin2005, thanks for this very exhaustive answer, I'd like to raise one point though:
What's the point of airdropping a token for a "main-chain" dapp when all the transactions to and from your dapp are free and all you need as a dapp is bandwidth which can only be purchased with native EOS tokens... so what's the use of a EOS dapp token and how can value accrue to it? I don't get it.
Hi @tradealert, exciting questions you raise, I'll try to add to workins comprehensive answer:
Hope that helps..
Heya @conceptskip welcome to this thread :D
So if I understand correctly, every time a project airdrops their own dapp tokens those tokens need to be staked to acquire RAM/bandwidth for the dapp.
If dapps are incentivised to issue their own token and can create RAM/bandwidth out of thin air, how does value accrue to the main-chain EOS tokens then?
Please Note the difference between eos coin proper, which needs to be held and staked for infrastructure in order to operate a dapp or an airdrop. The tokens dropped don't give you any stake in eos, or the eos infrastructure, but only on the dapp itself. Eg everipedia operates on eos, and they need to have eos staked and bought ram to operate.
Their IQ token does nothing with eos, but you can use it on the everipedia platform to create or rate articles.
What he said. Thanks @conceptskip. By the way, when are you going to head over to @TIMM? You’d make a great addition to the community.
Not sure how that works? I registered and published an article from there, but to no real effect. I thought maybe its more about TA etc.?
OK @conceptskip, I see, I think I got confused because of this:
I thought you were saying that airdrop tokens needed to be staked to provide the dapp with RAM, as I understand only EOS tokens need to be staked to power a dapp.
Here's my takeaway from our conversation:
Am I missing anything else?