The start of 2021 saw a massive drop in EOS price due to large-scale sell-offs by investors. Panic selling by investors resulted due to the resignation of Dan Larimer – CTO of Block.one that developed the EOS blockchain software.
Moreover, the Bitcoin(BTC) holdings of Block.one is twice that of the total currency’s market capitalization. Thus, this currency is simply a mechanism to accumulate BTC. This realization by investors has also negatively impacted EOS prices.
Performance From Last Week to Today
EOS prices were volatile in the past week too. It was trading at $2.75 at the start of the week and by 26th January, the price plummeted to $2.62 – a 4.73% drop. This is indicative of investors’ bearish sentiments. The 200 SMA has been a strong level of resistance for bulls to break through.
In the past 24 hours, EOS was trading between $2.55 and $2.64. Thus, selling pressures continue on EOS prices.
Price Expectations for Coming Days
Currently, OBV (On-Balance Volume) indicator is falling which implies a bearish trend. The Awesome Oscillator (AO) is also showing bearish momentum.
The downtrend is further confirmed by the A/D (Accumulation/Distribution) indicator. Both prices and A/D are falling. Therefore, distributions are dominating as sell-offs continue. So, EOS prices will decline further.
The resistance price is $2.574 and the support price is $2.5334 (23.6% Fibonacci levels for a downtrend). Currently, EOS is trading at $2.5755 – just above the resistance price.
As per pivot calculations, the highest resistance and support points are at $2.68 and $2.60 respectively.
Even though EOS is trading above $2.68, it is too early to confirm a bull. In addition, with bearish signals coming from all indicators, prices are likely to fall. This slight uptrend is just a part of the price correction process.
With no positive developments coming from Block.one on the EOS project, this bear run of EOS will continue. Also, it is possible that the prices might stay at mid-point of support and resistance.