At this spot rate, EOS is trading at its two months low and if EOS sellers keep up pace, we might see prices testing March lows and our ideal bear targets at $4. Of course, it mainly depends on how USDT and ETH, the main coins which are traded against EOS perform. Unfortunately though, most of these secondary coins depend on BTC performance. It’s basically a chain but the best thing to do is to trade with the trend. At the moment, it shouts sell negating our previous bullish projections.

From the News

The promises and user case application of blockchain technology cannot be underestimated. However, there is one big caveat. That of security hacks and network exploitation at the expense of the end user. Mostly, coin holders bear the brunt when there is exchange infiltration as the case of Coinrail, BitGrail and lately BitHumb. Those are exchange specific and it’s their centralized nature that makes them a honey pot and a perfect target for hackers.

On the other hand, coin holders as EOS have to contend with individual savvy attacks through phishing and outright theft. It seems there are plenty of those and as the network is yet to fully stabilize, EOS is issuing out a statement. In a warning to users, the Dapp platform warned its users of a site, eos-platform.net, which in their analysis generates bug-infested wallets in a bid to steal EOS coin owner’s private keys. Those with MetaMask often gets warning on their tab whenever they visit this site but innocent web browsers and trying to transact on EOS are the most gullible.

Anyway, with a robust arbitration in place which some critic claims are even calls for more centralization, EOS can hold and reimburse stolen private keys. It’s what we can say is an aspect of selective transaction reversal which is god sent for those aggrieved through hacks and which wasn’t possible before because of the blockchain immutability stamp. That feature alone, which is also the first in the blockchain real, will be a center for resolving cases of lost coins through phishing attacks and the likes. In real sense, EOS has this capability of policing the system and allowing transaction changes whenever 15 of the 21 block producers agree to claimant’s assertions.

EOS Technical Analysis

Weekly Chart

EOS Weekly Chart for June 22
Click here to see the full size EOS Weekly Chart for June 22

Just for perspective, EOS is down 20 percent in the past week alone. However, it gets worse because in the last 24 hours. It’s literally crashing, shedding a whopping 20 percent. The fundamental triggers for this is not yet clear but technicals are clearer as we had laid it out before. As we can see, not only are EOS bears  pressing their sell pedals squeezing buyers out but it is also happening at a backdrop of low trading volumes.

So, in real sense, this can be a long covering but it is a deep one all thanks to these persistently low volumes in the last two months. It’s also a picture of effort versus results because as we can see, the last two months bear stream is struggling to unwind April gains. The depreciation and race towards April lows at $4 is getting more intense with every bear candlestick that complements the prior. In this case, we expect a follow through as EOS valuation continue to drop down from April ATHs.

Daily Chart

EOS Daily Chart for June 22
Click here to see the full size EOS Daily Chart for June 22

From our analysis, our trading ranges were defined with triggers at $12 and June 14 lows at $9. So, following that spike seeing prices dropping below $9, our sell trades are live. As we can see, EOS is down 18 percent at the time of press resulting in that long bearish engulfing candlestick slicing below our minor support at $9. I recommend selling on pull backs at the 4HR chart in the coming days and the ideal bear targets stand at $4 as aforementioned.

Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.

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