EOS has dropped by a total of 15% from the high of $8.62 ever since Block.One, the development team behind EOS, revealed their highly anticipated “Big Announcement” of a social media platform built on the EOS blockchain. The market predicted that EOS would drop following the announcement as cryptocurrencies tend to follow the typical “buy the rumor, sell the news” guidelines.
EOS has dropped a further 6% over the past 24 hours, and the cryptocurrency’s price is currently hovering around $7.28.
Source: CoinCheckup
Despite this precipitous price decline over the start of June 2019, EOS has still seen a 48% price rise over the past 30 trading days, with a further 105% price surge over the past 3 months. The cryptocurrency is ranked in 6th position, recently losing out to Litecoin, as it holds a $6.74 billion market cap.
Strong support is expected below where a rebound is possible within EOS. Let us take a look at the market and highlight some potential support moving forward.
EOS Price Analysis
EOS/USD – MEDIUM TERM – DAILY CHART
What Has Been Going On?
We can see that, before the announcement, EOS/USD had risen into resistance around the $8.58 level, which is provided by a long-term bearish .5 Fibonacci Retracement level (drawn in red). This bearish Fibonacci Retracement level is measured from the June 2018 high to the December 2018 low.
After the announcement, we can see that price action fell and is now trading around the $7.28 level.
How Low Can We Go?
Despite the recent price fall, the market is still in a bullish trading condition, which will only be invalidated when EOS drops beneath the $6.50 level.
Toward the downside, we can expect initial support to be located at the $7.00 level and at the previous bearish .382 Fibonacci Retracement level (drawn in red), priced at $6.93. Beneath this, further support can be expected at the $6.52 level, which provided significant resistance for the market during May 2019.
If EOS continues to tumble beneath $6.50, further support lies at $6.00, $5.84, and $5.32.
What If the Bulls Regain Control?
Alternatively, if the buyers regain control, initial resistance above the market is located at $7.50, $8.00, and then at the strong resistance at the bearish .5 Fibonacci Retracement level (drawn in red), priced at $8.58.
Conclusion
EOS has now dropped by a total of 15% since announcing its upcoming social media platform. However, this price fall was expected and we can expect strong support toward the downside to be located at $7.00, $6.93, and $6.52, where a rebound can then be expected.
