EOS Technical Analysis | EOS Experiences A Rocky Launch For Such A Crypto Giant

EOS, the brand new protocol coin has recently experienced major turbulence plagued by bugs and concern of centralised governance. However, the EOS markets have held strongly despite these concerns.

The top 5 cryptocurrency has experienced a few weeks of turmoil as prices have fallen a total of 22% over the past 30 trading days. It is important to note that this price drop is experienced across the majority of cryptocurrencies across the entire market.

EOS is currently trading at $10.70 and has experienced a 3.36% price appreciation over the past 24 hours. The cryptocurrency is still sitting at rank 5th in terms of overall market cap value across the board with a market cap of $9.66 billion.

EOS has had a rocky start to its mainnet launch last week. The blockchain had come to a halt just a mere 2 days after the mainnet had launched due to an unforeseen bug.

nother significant question raised over the last few days concerns the centralised governance revolving around EOS’ “Block Producers”. There are 21 Block Producers maintaining the EOS blockchain. Before the EOS launch a constitution was drafted to maintain the decentralised nature of EOS, however, these Block Producers (BPs) have the power to change the constitution of EOS so long as they all agree on the changes to be implemented.

The centralised power of the BPs is ever more apparent as all BPs were on a conference call during the time that the EOS blockchain had halted, looking for a solution. On the 17th of June, the BPs had decided to freeze 7 EOS accounts that had been involved in phishing attacks during the bug until further notice. For cryptocurrency, centralisation of this fashion goes against all of Bitcoin’s ethics.

We can see that after the bullish run experienced in April when price action hit an all time high of $23.02, the market began to roll over and has been depreciating ever since as price is currently down 60% from this all time high. The market has retraced just past the .618 Fibonacci Retracement at a price of $11.17.

Looking at price action from the recent term above, we can see that despite allow the potential negative news surrounding EOS, the crypto giant has managed to find a significant level of support just above the $10 handle.

CONCLUSION:

A break above the .618 Fibonacci Retracement at $11.17 could be the first signal that EOS is ready to trade higher. Another break below $10 would indicate that the worst of the depreciation for EOS against the USD is far from over.

EOS has experienced a launch riddled with bugs, blockchain halts and uncertainty regarding centralisation of the Block Producers. However, the market seems to be holding strong as the EOS launch unfolds.