Although Boosted by News, EOS Struggles to Make Headway

Although Boosted by News, EOS Struggles to Make Headway

EOS (EOS) has been struggling to keep its head above the water in the recent days. The price is currently testing the major support, which if broken, may facilitate a bigger correction lower.

On the fundamental side, the EOS project has received two important boosts. First, China released the official ranking of major cryptocurrencies which has seen EOS keep its leading spot. For instance, Bitcoin (BTC) is in the 15th position.

The list is published by government-controlled Center for Information and Industry Development. It can also be seen as the “old news”, given the list leaked in May 2018.

In other news, the EOS received more positive comments, now from Brock Pierce, a crypto entrepreneur and venture capitalist.

Pierce said that “EOS and Tron are crushing it”, reacting to the recently released “Annual Dapp Market Report” by Dapp.

The report notes that “the booming betting dapp market was mainly contributed by EOS and TRON, the two high-speed DPoS blockchains built for decentralized apps”. More specifically, EOS now tops the list of the number of transactions and their volume in two quarters of 2018.

According to the provided data, 97% of the overall number of transactions came from gambling, while 75% of the volume was contributed by betting games.

Still, the EOS price is struggling to move higher, in line with the rest of the cryptocurrency market.

As can be seen in Chart 1 below, the price action is currently sitting at major support around the $2.30 handle.

Graph 1. EOS (EOSUSD) 4H chart

The major support consists of the horizontal support, (the purple line), and the ascending channel support. A break of this zone and a daily close below it would open the door for an immediate push to the next level of support – the 61.8% Fibonacci retracement zone.

The major Fibo zone sits together with another horizontal support, (the red line), around the $2.18 mark.

On the upside, the descending trend line, (the blue line), will provide significant resistance to any attempt to push higher.

EOS is currently the 4th biggest digital currency in the world with the market cap of $2.1 billion.

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