фото показано с : invezz.com

The price of EOS has weakened from $3.47 below $2.50 in less than two weeks and the current price stands around $2.75. The main reason for this is a low transaction volume and the fact that EOS investors faced trust issues.

The price of EOS has been moving in a downtrend last several weeks and for now, there is no signal of the trend reversal. EOS is constantly adding new clients but there’s still a level of uncertainty surrounding the project. EOS investors faced trust issues since the U.S. Securities and Exchange Commission (SEC) slapped a $24 million penalty to Block.one (EOS’s parent company).

The reason for this was an unregistered initial coin offering and the investors started to have doubts over the project’s long-term viability. Transaction volumes have become smaller and analysts found out that people use EOS for placing small bets instead for value-transfer purposes. It is also important to mention that the price of EOS is correlated with the price of Bitcoin and investors in this cryptocurrency should also have Bitcoin on their “watch list”.

Before two weeks, Bitcoin weakened below the important $10,000 level for the first time since late July. This certainly had a negative influence on the price of EOS and since then, EOS is not able to recover above the $3 resistance level. Another important reason why this cryptocurrency has weakened in September is the fact that investors believe that there are lots of other cryptocurrencies with bigger potential and with less risk.

On the other side, some analysts say that this cryptocurrency has a positive long term outlook because EOS could replace Ethereum as the dominant smart contract platform. Investors in EOS should have in mind that this is a still very risky cryptocurrency but now could be a good time to buy EOS.

The technical picture implies that the price reached the bottom, but is it ready for a rebound? Let’s have a closer look at the chart below.

According to the rules of technical analysis, the main trend of this cryptocurrency is bearish. The current resistance levels are $3, $3.5 and $4, $2.5 and $2 represent the strong support levels.

If the price jumps above $3 it would be a “BUY” signal and we have the open way to $3.5. Rising above $3.5 supports the continuation of the bullish trend and the next price target could be located around $4. On the other side, if the price falls below $2.5 it would be a strong “SELL” signal and we have the open way to $2 support.

The price of EOS has been moving in a downtrend since the beginning of September and for now, there is no signal of the trend reversal. The main reason for this is a low transaction volume and the fact that EOS investors faced trust issues. EOS is constantly adding new clients but there’s still a level of uncertainty surrounding the project. If the price falls below $2.5 it would be a “SELL” signal and we have the open way to $2.

The post EOS price is down 21% since the beginning of September, here’s why appeared first on Invezz.

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