EOS/USD Price Forecast Q4 2020: EOS Trading on a Bearish Triangle

EOS/USD Price Forecast Q4 2020: EOS Trading on a Bearish Triangle

Posted Monday, November 2, 2020 by
Skerdian Meta • 3 min read

EOS is a block chain system similar to Ethereum. It was created in late 2017, and its market capitalization stood at $ 2.68 billion as of October 2020. It had a great run in the first months of its life. It came at the right time, just before the “Gold Rush” for cryptocurrencies started back then. As we know, Bitcoin surged close to $ 20, while the EOS/USD surged from below $ 3 to $ 18.50 in January 2018. Then the price pulled back below $ 4, but it surged once again during the first few months of that year, while the rest of the crypto market was pulling back lower. EOS reached its highest level in April 2018, topping out at $ 23.30, but it has been on a long term bearish trend since then, and the situation doesn’t look too promising, with a bearish triangle forming on larger time-frame charts. 

Recent Changes in the EOS/USD Price

PeriodChange ($)Change %
30 Days+0.09 +3.4%
3 Months-0.35
-11.7%
6 Months-0.11-4.0%
1 Year-0.61-18.7%
Since 2017 +2.23+531.5%

 


Factors Affecting EOS 

The technical picture doesn’t seem too bright for EOS, as the trend has remained bearish since April 2018, with the highs getting lower and moving averages providing resistance during retraces up. The recent price action doesn’t look very optimistic for the EOS/USD either, as other major crypocurrencies are increasing at a considerable pace, while EOS has been declining since August. However, there are some positive developments going on for EOS, such as “EOSIO for Business,” which targets the enterprise world, but at the same time, there are also concerns about the decentralization of stakes, with the largest share of entities that govern the chain mostly being situated in China. 

EOS/USD Forecast: Q4 2020EOS/USD Forecast: 1 YearEOS/USD Forecast: 3 Years
Price: $ 3 – $ 3.20

Price drivers: Technicals, Crypto market sentiment, EOS sentiment 

Price: $ 4.50 – $ 5

Price drivers: Adaption of EOS for business, Crypto market sentiment

Price: $ 8 – $ 10 

Price drivers: New developments from EOS, Shareholder issue, Crypto market

EOS/USD Live Chart

EOS/USD


EOS Price Prediction for the Next 5 Years

Recent Developments for the EOS/USD

EOS runs on the EOS.IO system, which is a decentralized blockchain system that allows hosting and execution of decentralized applications, or Dapps, and the development of Dapps on its platform. As mentioned above, this network system is similar to that of Ethereum, but while Ethereum is looking to move from proof-of-work POW to proof-of-stake, EOS is already running on POS, which makes it cheaper than mining.

EOS doesn’t charge individual clients for transactions, and it has the ability to offer 1 million transactions per second (TPS) and great scalability. It uses inflation instead, which the EOC community voted to be reduced from 5% to 1%. But one issue for EOS currently, is the concentration of a large portion of its shareholders in China, which is making it less profitable for other participants, and also less democratic. EOS has now released “EOSIO for Business,” having modelled its software featuring Blockchain-as-a-Service (BaaS) to a version focused on enterprises. LimeChain created the EOSLIME tool after they received an EOS VC grant, to help customize an existing module of EOSIO or deploy an entire system.

Technical Analysis – Moving Averages Keep Pushing the EOS/USD Down?

 

The 20 SMA has been providing resistance for EOS in 2020

EOS was created at the right time, at the end of 2017, when the surge in cryptocurrencies was just starting. The EOS/USD pair surged during December that year and in January 2018, but pulled back lower in the following two months. In April, we saw another massive surge that took the price to $ 23.30. Since then, the pressure has been towards the downside, and the retraces higher have been getting weaker every time. However, a support zone formed around the $ 1.50 level, which has been holding since late 2018, and this has formed a descending triangle, together with the bearish trend line. The 20 SMA is also helping keep EOS down on the monthly chart, and it has been providing resistance on retraces recently, despite having been pierced a couple of times.

 

The stochastic is now oversold and turning up on the weekly chart

On the weekly chart, the bearish trend is visible as well, with highs getting lower each time, indicating selling pressure, although sellers haven’t managed to make new lows. In this time-frame, the 100 SMA has been the ultimate resistance for the EOS/USD, having provided resistance in February 2020, rejecting the price and reversing it down, after a doji candlestick below it, which is a bearish reversing signal after the retrace higher. The 100 SMA rejected the price again in August, as the stochastic indicator became overbought. But now, the stochastic is oversold and turning upwards, so we might see a retrace higher on the 100 SMA until the end of the year, and then another rejection and a bearish reversal. 

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.