With every second that pass, EOS investors are increasingly becoming disappointed and unloading their coin holdings. We are beginning to see that because EOS is one of the biggest losers in the last 24 hours. It could get worse because it’s poised to shed more if we don’t get official updates from EOS New York and Canada. These two are coordinating mainnet launch and updating the community. Otherwise, we remain net bullish anticipating positive news to propel prices above $15.
From the News
So, before their much hyped EOS mainnet initiation, Dan Larimer and Block One had let known throughout the crypto world that EOS coins would be frozen for only two days. Those two days are now over and three days later, Block Producers are haggling over which version of the mainnet to launch.
It might be trivial from the plain eyes of an investor but the more the delays, the more we become pessimistic. EOS prices are likely to take a hit from this. As we can see from the chart, prices are doing fine and trading is possible at exchanges that supported EOS mainnet launch.
While we can take a neutral approach and allow EOS Block Producers to iron out their launch issues, many are taking shots at EOSIO security. There is a bounty program running following 360 sirens of system vulnerabilities but that’s not the point. Critics are now pointing their fingers at Block One saying that they may have sub contracted the platform coding to a third party and this the reason why programming flaws are rampant. Just to mention, Guido Vranken smoked out 12 different weaknesses in a single day. That’s how serious things are.
Besides, with launch delaying, critics’ assertions that EOSIO is just but another over-funded project that tries to collapse a whole spectrum of user cases into one simplistic goal is increasingly becoming true. Remember, EOS and Block One has close to $4 billion worth of ETH at their disposal and we already say what they are capable of doing in the market. Any form of dump will lead to a capitulation of ETH as we briefly saw last week.
EOS Technical Analysis
Week over Week, EOS is up 13 percent making it the fifth most valuable coin in the world at $12.40 billion. Unfortunately such valuation without a working product shows the level of investors astounding irrational exuberance. It’s a question we keep asking: Without a working blockchain and frozen coins, will EOS prices take a hit as sentiment turn red because of launch delays?
As per our previous emphasis, the last four candlesticks before last week are likely to be long coverings. Look at it from an effort-result perspective and you quickly conclude that it took four candlesticks with low volumes to overcoming that single bullish thrust on week ending April 29. Advised by this, the only logical approach is to look for under valuations in lower time frames.
Following periods of bear pressure, we saw bullish reversals last week and it’s because of that technical formation that we anticipate prices to pick up this week. While we remain cautious to buy or sell because of that fundamental delay, setting short term resistance and supports at last week’s high low would be more prudent.
Honestly, EOS prices have been all over the place this week. Yes, June 2 bullish candlestick has some bearing on price action and is our guide for increasing buy positions this week. So, for that projection to go through then we must see some moves above $15 or June 2 high. It’s that simple. If not and assuming prices edge lower, closing below $12 then we shall change our skew and trade in line with May 11 bearish candlestick.
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