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analysis: EOS/USD EOS extends declines; Investors take another look at the longest ICO as the mainnet launch approaches

  • EOS project has collected over $2 billion in form of Ether since the beginning of the ICO.
  • EOS price declines 5.61%; $15.5 will offer support on the downside.

The crypto market is bleeding red with most of the coins showing negative corrections, EOS price has joined to downside band wagon and is down 5.61% and trading at $17.50 on Wednesday. The digital asset that is preparing for the launch of its mainnet network this coming month is still locked within the falling wedge pattern we explored during yesterday’s coverage.

EOS Initial Coin Offering (ICO) has been running for the longest time unlike most ICOs that last only a few months. The network decided to run their ICO differently from the summer of 2017 to June 1 2018 before the launch of EOSIO. EOS project has collected over $2 billion in form of Ether since the beginning of the ICO. The platform has been praised for being able to support the next-generation of smart contracts. A report from Multicoin Capital and say that the platform is faster, provides an affordable means of executing smart contracts as opposed to the obvious rivals, NEO and Ethereum. Multicoin wrote in reference to EOS platform:

“EOS takes a unique approach to creating a highly scalable platform for smart contracts. EOS prioritizes scalability and end-user experience rather than maximal censorship resistance.”

EOS price analysis

EOS traded above $18.00, but the upside was capped by the descending trend line on the 3-hour time frame chart. Indicators are pointing towards a continued bearish momentum as the trading progresses on Wednesday. The 50 SMA has crossed below the 100 SMA which could signal for more selling entries in the near-term. Besides, the MACD is towards the negative region on the same chart. On the upside, the 23.6% Fib retracement level is offering resistance, moreover, EOS/USD will encounter more resistance at $18.00 as it retraces towards $20.00. On the downside, the lower side of the falling wedge pattern is supporting the price. Below this level, another support is highlighted at $15.50 level.

EOS/USD 3-hour chart


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