EOS is trending lower inside a descending channel on its 1-hour chart and is currently testing support. A bounce off this area could take it up for another pullback to the channel resistance at 2.600.
The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the selloff is more likely to carry on than to reverse. The gap between the moving averages is also widening to signal stronger selling pressure.
RSI is turning higher to signal that bulls might be returning, possibly taking price back up to the mid-channel area of interest onto a test of the top. Stochastic is heading lower to signal that selling pressure is in play but is dipping into the oversold region to indicate exhaustion and a possible takeover by bulls.
EOS is tumbling along with the rest of its cryptocurrency peers that can’t quite seem to shake off the FUD that has been gripping the markets these days. It doesn’t help that centralization woes are still in play for EOS, especially after the Starteos announcement to delegate its node as a proxy would allow users to earn a stable income in EOS tokens:
“Users could not only gain revenue through mining mode but also gain revenue through game mode. EOS mining mode is simple, stable and with nice revenue; the game mode maybe is more profitable and fun to play. Since we offer idle games, there is no loser in the game world of Starteos.”
This idea appears to run contrast to EOS’ promise of a an easily scalable and decentralized and democratic blockchain network in its whitepaper. This might hurt the long-term prospects of the EOS network unless it is able to improve upon its infrastructure.