Bitcoin recently took a nosedive, bringing the entire cryptocurrency market with it. Although some altcoins recovered from the recent drop, most—including EOS, Cardano, and TRON—remain in a bearish posture signaling a further decline.

EOS is one of the most prominent smart contract projects in the cryptocurrency industry. Born during the 2017 ICO mania the project rose $4 billion through its token offering.

However, the base structure of the project has sparked fears of centralization among investors. In terms of token ownership, many of these holders are based in China. The largest token holder, Block.one, the company behind EOS, has also been criticized for its role in the ecosystem.

As a result, EOS Tribe announced that it will move away from its candidacy as a block producer and others threatened to do the same.

On this backdrop, EOS experienced a significant decline over the last week. Technically, it seems like the move comes after an evening doji star candlestick pattern developed on its 3-day chart. This is considered a bearish reversal formation that occurs at the top of an uptrend.

Evening doji stars are composed of three candlesticks: a long green candle, a short candle, and a red candle. The combination of these three candlesticks indicate that EOS is losing its bullish momentum and indicates a reversal.

EOS indeed reversed per the bearish formation, dropping more than 40 percent to reach a low of $2.40 on Sept. 24.

Now, the TD sequential indicator is on green nine on both the 1-day and the 12-hour chart, which is a bullish signal. Based on this technical index, the buy signal will be validated the moment a green two candlestick begins trading above a preceding green one candle. A spike in the buying pressure behind EOS that allows it to move above $3.10 could take it to test the $3.55 resistance level. Breaking above this area has the potential to push this cryptocurrency back above $4.

Nonetheless, the previously mentioned bullish signals can be invalidated if EOS breaks below the recent low of $2.40. The next support levels this crypto could test on its way down are around $2.10 and the $1.55.

Cardano has been in the spotlight over the last couple of days. Binance launched a dedicated platform for customers in the U.S., including the Ada token in its list of supported coins.

Additionally, Cardano’s founder Charles Hoskinson recently confirmed that following a successful test run in London, the Shelley testnet is now available to the community. This marks a new phase in the implementation of the Ouroboros Genesis consensus algorithm that aims to allow both sharding and global scaling. This will pave the way for solving the centralization and proof-of-stake problem that the network currently faces.

Despite the positivism surrounding this cryptocurrency, it continues moving downwards alongside the rest of the market.

On Aug. 6, ADA closed below the 61.8 and 65 percent Fibonacci retracement level, which indicates a trend reversal from bullish to bearish. Now, it is extremely likely that Cardano will continue retracing to hit $0.027. This is the same price point that marked the bottom of its bear market. Thus, a retest of the $0.027 support level could form a double bottom formation that allows it to bounce off to new higher highs.

However, if this support level is not able to contain the price of Cardano, it could trigger a massive sell-off that takes it to reach a new all-time low.

As Cardano stands on shaky grounds, its 4-hour chart could be used to determine whether a further correction is imminent. Under this timeframe, ADA is sitting inside a no-trade zone between $0.036 and $0.039.

A break below support will signal a 23 percent drop that takes it to the Dec. 7, 2018, low of $0.027. Meanwhile, a move above resistance could signal that a “Bart” pattern has formed and ADA will most likely swing back up to $0.044.

TRON has not been able to recover from the allegations that surfaced after its CEO Justin Sun canceled a charity lunch he had won with Berkshire Hathaway CEO Warren Buffett over two months ago. Even though the accusations were never confirmed, it seems like the market took them for granted.

As Sun continues his relentless marketing strategies and ramps up his efforts to take TRX back into the top 10 by market cap, this cryptocurrency continues depreciating. As a matter of fact, after trading at nearly $0.041 in June, TRON has lost most of the gains it made this year and recently reached levels that it has not seen since the end of 2018.

TRX is currently trading around the $0.0125 support level, which represents a pivotal point on its trend. If this level holds, a double bottom pattern could develop on the 1-week chart. This is considered a bullish reversal formation that could signal the beginning of a potential uptrend. A spike in volume could be used as a strong indication that this pattern will be validated.

Nonetheless, a move below $0.0125 could jeopardize the double bottom pattern and push its price down to the next level of support that sits around $0.01.

It is worth noting that Justin Sun has a tremendous impact on the price of TRON. Now, the TRON Foundation is reportedly working to reschedule the charity lunch with Warren Buffett and a new wave of marketing wouldn’t be surprising. If done right, this could be the catalyst that allows this cryptocurrency to regain the bullish trend it saw throughout the first half of the year.

The overall sentiment around EOS, Cardano, and TRON is bearish. At the moment, they all have broken below the 61.8 percent Fibonacci retracement level, which is a sign of a trend reversal from bullish to bearish. Although there are different technical signs indicating that EOS could soon experience a bullish impulse, the fear among investors about the level of centralization around this cryptocurrency could influence a further decline in combination with a shaky market will likely keep the coin down.

Since Bitcoin could be preparing to retrace to $6,500, it will be wiser to wait for confirmation before entering a bullish position.

The post Trading indicators show EOS, Cardano, and TRON dropping further appeared first on CryptoSlate.

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