EOS blockchain struggled long before any negative outlook developed for the cryptocurrency industry. Being an old token, EOS held its peak value of $23 in April 2018. EOS seems unsoundly affected even in the greatest crypto bull runs.
Despite its lack of price action, it finds a decent spot amongst the top 100 cryptocurrencies at 38th, with valuations surpassing $1 billion. Operating on a delegated proof of work with token holders having governance capabilities, it falls short of progressing its real-term applications.
EOS Struggles to Sustain Breakout
EOS has faced rejection at $1.84 in the last three months, with second resistance developing around $1.22. Price action shows a growing attempt to rest the moving averages and rank higher in terms of valuation. Technicals are showing gradual improvements, but the hopes of retesting their peak values should be left aside before investing.
EOS price action can be tempting for a new investor as the token has recently delivered a breakout pattern with a gain of 12%. Although the gains have now fallen to just 5%, the outlook for the EOS token has vastly improved compared to the November values of nearly $0.80. The movement easily marks a 25% retracement from its recent lows and close price proximity to the 100 EMA curve.
The RSI curve has already tanked from overbought zones to the 55 levels, MACD indicator is sort of repeating the previous breakdown trend. Hence it would be critical to assess the movement in the coming days, whether or not this token moves towards 100 EMA.
Technicals are showing immense buying rallies, but actual action shows restrained movement. Breaking out of its consolidation zones sure adds confidence in the price action, but the outlook of EOS doesn’t seem that great.
