I think the one thing you can probably count on is a lot of volatility and noise, so make sure that you can handle that as this market will probably be very violent once it finally gets moving.
EOS had a very slow day on Friday as cryptocurrency in general continues to be a bit of a wasteland. EOS is currently hovering right around the $1.00 level, an area that could cause a bit of psychological resistance. That being said, there’s nothing that really means anything to the market with the $1.00 level than the fact that the number is a round figure.
EOS, of course, is going to suffer right along with the rest of crypto, because there’s nothing special about this coin to differentiate it from anything else right now. Crypto is a mess mainly due to the fact that the entire space is a solution looking for a problem. While there will be some survivors of this “crypto winter”, there are going to be a lot of losers. In fact, I think a lot of the coins that we talk about now won’t be around next year. Whether or not EOS will be or not is a completely different question, but I don’t particularly see any reason why it is going to be the big winner.
In the short term, we could get a bit of a relief rally, but I think this is a trading opportunity more than anything else. If we were to break to the upside, then the 50-day EMA comes into play as resistance. I would like to see a little bit of a bounce so that we could reach that area and then see show signs of exhaustion. I would not hesitate to short in that general vicinity, especially if I could get my hands on leverage to do so.
On the other hand, we could break down below the $0.82 level, the EOS downtrend will continue in earnest, as there’s no reason to think that there are a ton of buyers underneath waiting to pick the market up. Whether or not the downtrend continues or we get a bounce is a bit of an unknown at the moment, so pay attention to the next move, because it should give you a bit of a “heads up” as to what we could do next. Regardless, I think the one thing you can probably count on is a lot of volatility and noise, so make sure that you can handle that as this market will probably be very violent once it finally gets moving.