It’s a moment of Triumph for EOS following their recent staking success as their blockchain protocol dictates. After what it look like years of voting in the midst of strong sell pressure, EOS is finally finding support. As a matter of fact, it’s up five percent in the last 24 hours and technical formations points to chances of further gains in the next few weeks.
Let’s have a look at these charts:
EOS in the News
It always draws controversy but many argue that by not talking or even addressing these claims, EOS supporters are sweeping valid questions under the carpet. But, really, do you think there is enough decentralization in EOS? Let’s not talk about the eye-popping $4 billion that Dan Larimer and Block.One racked up from excited investors during their year-long ICO.
By the way, the mere fact it took a year for these funds to be availed and make possible this project clearly defines the “mania” of cryptocurrency. So, back to our question and there are solid pointers that hints that after all, EOS is turning out as talkers and will take time before they reach the same efficiency as Ethereum, a platform they want to dislodge from position two. The recent coin staking turmoil is a clear demonstration of our assertions.
While their EOS mainnet was launched on June 2, it took more than 10 days for the 150 million threshold level to be hit. All thanks to the coins which were held at exchanges and the lack of marketing from interested parties on how to safely vote. Some coin holders were wary of voting because their private keys were required during this process. Other allegations points to a possible wait and see game by EOS whales.
As they held a large stake, voting in any way would have swayed the final result and this is where critics are saying there is possible centralization. Or, is there any other way of explaining this expansion of staked coins from 110 million to 150 million within one day? Remember, it took more than 10 days to amass the 110 million votes but one day to raise 40 million.
EOS Technical Analysis
Technically, we can compare sequence of events right after week ending April 29 weekly candlestick was printed and the consequent candlesticks including this weeks. Here we notice that while week ending April 29 candlestick printed EOS ATHs at around $23, odds are subsequent bear candlesticks are nothing more but long coverings.
We can check the volumes of these seven or so candlesticks which averages 85 million and compare them with week ending April 29 which printed a whopping 135 million in market participation level during that week alone.
Besides, the fact that seven candlesticks were needed to reverse gains of one candlestick in a span of six weeks is an indicator of effort versus result. As such, it make sense to trade in the direction of week ending April 29 bullish engulfing candlestick and buy in lower time frames.
April bull pressure is what sets the ground rolling and advises our trend disposition. Because of events in the weekly time frame, we shall only be taking long positions whenever there are clear indicators and supporting volumes.
Now, since we have a clear three bar reversal candlestick printing right off from our support line at $10, all we need is a confirmation. That’s assuming you are a risk adverse trader who needs assurance and needs to see buyers pushing above $13 or even $15. However, aggressive traders can take advantage of the recent set up and ramp longs with stops at $9-that’s June 13 bull pin bar. Regardless of your approach, our ultimate buy target lies at $23.