EOS aborts liftoff a week after rebranding- what’s next

The EOS cryptocurrency was one of the most interesting performances in August. It enjoyed a strong rally prior to its rebranding, but has since dropped most of the gains over the past 10 days.

Understanding its latest price action can help formulate a decent short-term outlook. At the time of writing, EOS was down around 5.2% in the past 24 hours and 23.5% in the past seven days. It had previously increased by around 130% from the current low of 2022 to the recent high.

The latest retracement therefore reflects the selling pressure of post-rally takers.

The strong advantage of EOS was bolstered by the enthusiasm for the rebranding in Antelope. A sharp increase occurred before the rebranding date, thus forming a “buy the rumors, sell the news” price characteristic.

Source: TradingView

Furthermore, the price as of August 31st was moving within the Fibonacci zones, and this provides an advantage when it comes to forecasting the next result. EOS’s downward trajectory was facing friction at the Fibonacci level of 0.236.

Both the Relative Strength Index (RSI) and the Money Flow Index (MFI) have hovered around the 50% level, hence a greater likelihood of a bullish pivot.

Source: TradingView

Ripe for the upside?

The alignment of multiple indicators could suggest that EOS may be poised to regain its bullish trajectory. It will have to secure a lot of buying pressure, but its social metrics suggest it shouldn’t be a big deal.

In fact, EOS ‘social dominance and social volume metrics saw a notable spike in activity between August 30th and 31st. This result further strengthens the thesis of a potential pivot.

Source: Santimento

The EOS weighted sentiment also highlighted a strong shift in market sentiment since Aug 29.

Meanwhile, its developer activity metric has shown an increase in activity over the past five days. A positive development considering its trajectory before mid-August.

Source: Santimento

Careful investors

The increased development activity could further consolidate the current short-term prospects. However, investors should also consider the general market scenario.

Notably, some cash returned to the market between August 30 and 31, but the global cryptocurrency market is still below $ 1 trillion.

This means that most investors are still on the verge of buying back. On the other hand, the improvement in sentiment after the last downside could be a sign of what to expect in the first week of September.

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