The EOS community voted to bring the annual inflation rate down from 5% to 1%.
It’s been busy days for EOS in the last couple of days. After several exciting news regarding the network, a “dispute” with Bloomberg, another update just emerged from the community.
On June 1st, the EOS community held a voting regarding the annual inflation rate. The proposal sought to change the EOS annual inflation rate from 5% to 1%.
In more details, the poll mentioned that out of the current 5% rate, 4% is accumulated in the eosio.saving account, while 1% is distributed to block producers in pay for running/securing the network.
The original intention of the 4% accumulation was for the community to vote on how to spend it. For instance, they could vote to burn it or vote on various worker proposals.
Eight months and 8.75 million accumulated EOS tokens later, however, there’s still no clear use on what to do with the large amount of funds on the saving account.
This brings fear to the community that the $108 million and counting funds will eventually become an “attack vector” to the network.
“This proposal is therefore a request for the top 21 block producers, through a 15/21 multisig, to reduce the continuous_rate of inflation within the eosio.system contract from 5% to 1% and furthermore, to stop any EOS tokens being accumulated within the eosio.saving account by turning off the eosio.saving transfer action,” the announcement wrote.
At around the same time, Block.One announced several important updates on the EOS network, including the launch of the new social media platform, Voice.
EOS Price Analysis: Bears In Control, $3.20 Could Be Next
- EOS price declined below the key $4.000 and $3.800 support levels against the US Dollar.
- The price is now trading well below $3.800 and it could continue to decline.
- There is a crucial bearish trend line forming with resistance near $3.920 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
- The pair is likely to decline below the $3.500 support level and it could revisit the $3.200 support.
EOS price is gaining bearish momentum against the US Dollar and bitcoin. The price is trading with negative angle and it seems like the bears are eyeing the $3.200 support.
EOS Price Analysis
In the past few sessions, there was a sharp decline in bitcoin, Ethereum, ripple, litecoin and EOS against the US Dollar. Earlier, EOS price struggled to break the $4.150 and $4.200 resistance levels. A swing high was formed near $4.121 and the price started a strong decline. It broke the key $4.000 support level to enter a bearish zone. Moreover, there was a break below the $3.800 support, with a close below the 55 simple moving average (4-hours).
Finally, the price broke the $5.650 support and traded to a new weekly low at $3.515. It is currently consolidating gains and tested the 23.6% Fib retracement level of the recent drop from the $4.121 high to $3.515 low. On the upside, there are many important resistances near the $3.700 and $3.800 levels. Moreover, the 50% Fib retracement level of the recent drop from the $4.121 high to $3.515 low is a strong resistance near $3.800.
The main resistance on the upside is near the $4.000 level (the previous support). Additionally, there is a crucial bearish trend line forming with resistance near $3.920 on the 4-hours chart of the EOS/USD pair. Therefore, the price might struggle to climb above $3.800 and $4.000 if it corrects higher from the current levels.
On the downside, an immediate support is near the $3.500 level. If there are more downsides, the next stop for the bears could be near the $3.200 support. An intermediate support is near the $3.385. If the bears remain in action, there are even chances of a drop to $3.000.
Looking at the chart, EOS price is clearly trading in a bearish zone below the $3.800 pivot level. To move back in a positive zone, the price must break the $3.800 resistance and gain strength above $4.000.
Hourly MACD – The MACD for EOS/USD is gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently well below the 30 level and it is moving further lower.
Major Support Levels – $3.500 and $3.200.
Major Resistance Levels – $3.800 and $4.000.
EOS technical analysis: LTC/USD extends consolidation – Bollinger Bands
- Overwhelming bear pressure saw the sellers’ grip intensify from June 1 highs.
- The prevailing consolidation will soon culminate in a breakout.
EOS pulled a formidable move from April this year. For the first time in 2019, the price thrust through $8.00 hurdle. Moreover, the digital asset extended the gains above $8.5 before hitting a snag at $8.65 on June 1.
Overwhelming bear pressure saw the sellers’ grip intensify. EOS struggled to secure key support areas but the pressure pressed down even more. Tentative moving average support areas failed to hold. This opened the door for correction to July low at $3.30.
A shallow recovery has saw EOS rise above $4.5, however, there were no significant movements to higher levels. On the downside, declined are protected by the Bollinger Band 1-hour lower curved. The prevailing consolidation will soon culminate in a breakout.
The Moving Average Convergence Divergence (MACD) gradually slopes upward signaling the buyers to increase their positions. At the same time, the level trend by the Relative Strength Index indicates that sideways is likely to prevail in the coming sessions.
EOS/USD 1-hour chart
EOS Price Prediction: How Far It’s Come And Where It’s Headed
Like other top cryptocurrencies by market cap, it is worth taking a look at EOS price forecasts and what the virtual asset has achieved so far. EOS is the eighth largest crypto asset by market valuation.
The cryptocurrency was launched by Block.one and its year-long crowdsale lasted between June 26, 2017, to June 1, 2018. In the history of ICOs, it became the fourth largest after raising $4 billion during the crowdsale.
EOS Price Performance
According to Coinmarketcap’s platform, EOS’ price as of July 1, 2017, was $1.03. However, three days later and precisely July 4, 2017, EOS surged to $4.10 with a market cap of $550 million. While that price is quite similar to the EOS value of $4.13 today, the cryptocurrency’s market cap has grown to $3.8 billion.
Nonetheless, being priced at $4.13 today is an 81.96% decline from its all-time high of $22.89 on April 29, 2018. The date goes contrary to when the majority of the top ten crypto assets (except Binance coin and Bitcoin SV) attained their all-time high between December 2017 and January 2018.
EOS Declines Contrary to Leaps in Other Crypto Assets
What’s even more remarkable is that while most crypto assets were gathering momentum in months before December 2017, EOS had done otherwise. For instance, EOS mostly traded at $1 for three months between July and September 2017. Throughout most of September and October 2017, it devalued and sold for less than a dollar.
EOS was, however, able to join the party later in December 2017, since it spiked to $13.18 as its high for the month. While the surge may have been majorly attributed to Bitcoin’s bull run in December 2017, there was more to it because EOS kept surging in certain months in 2018 until the bear market took a toll on it. The latter can be attested to its price of $15.03, $22.89, and $1.92 on January 29, April 29, and December 17, 2018, respectively.
dApps Running of EOS Blockchain Contend with Ethereum’s
On the other hand, dApps running on the EOS blockchain are contending with that of Ethereum which was undisputed.
Eospark.com also shows that about 3.2 million transactions have occurred on the EOS network, and there are over a thousand accounts and 4,230 tokens running on its blockchain.
Crypto Community Predicts EOS Price
The crypto community is also predicting how EOS will be priced by the end of 2019 and 2020. For instance, MaxDapp, in a YouTube video published on April 30, 2019, opined that EOS would hit $10 this year.
In the same vein, Ivan on Tech in a Livestream on May 30, 2019, remarked EOS’s listingon Coinbase, its global adoption and other news emerging from Block.one can help to spike the asset’s price. Crypto Tim, another YouTuber in January 2019 revealed that he had converted all the Ethereum in his portfolio to EOS and he is betting hard on the asset.