EOS price analysis 6 September: Coin’s value crushed by emerging bear market
The market suffered what analysts called a bull trap.
Key takeaways
- EOS has been battered, hard, during today's trade.
- Trading volumes jumped up significantly over the past 24 hours, returning to volumes seen last week.
- Despite the huge rally late last week, the cryptocurrency has lost all of its recent gains.
EOS, one of the top five cryptocurrency coins by market capitalisation, has been dragged down significantly in trading today as a result of a snowballing bear market.
The cryptocurrency market has suffered what analysts are calling a "bull trap". Investopedia defines a bull trap as a false signal indicating a declining trend has reversed and is rising, when in fact, it will continue declining.
EOS was one of the hardest hit digital currencies when the bears forced the bulls over a cliff, causing the majority of the market to tumble in value. In the early hours of the morning of Wednesday 5 September, EOS' price fell from US$6.49 down to US$5.80. This rapid descent saw the coin shed one tenth of its value (-10%) in just a little over an hour.
Since then EOS' price has been trading sideways and down, losing as much as 15% through the session.
At the time of writing, EOS was valued at approximately US$5.47.
24-hour trading volumes jumped to US$978 million, more than one quarter (27%) higher than yesterday's.
FX Street reports that EOS/USD bulls failed to exploit a bullish pennant and bears sent the price free-falling.
EOS' price rallied in late August after news broke that the EOS community announced that they would hold a referendum in order to allocate almost US$200 million worth of funds stored in a growing eosio.saving account.
However, this decision, together with the earlier bull market, still hasn't been enough to maintain price gains.
Forex Crunch reports that a weak bullish trend is holding the price steady for now but selling pressure is too high to allow for any substantial movement towards the resistance of US$6.00. If a breakout does happen to occur and the price rises above this resistance level, it could put EOS back on track to reach US$7.00.
Additionally, global digital exchange OKEx just announced that EOS token margin trading is now available.
You can learn all about different exchanges, understand exactly how to buy and sell cryptocurrencies, calculate your taxes, discover digital wallets to hold assets and explore a list of all the alternative coins on the market.
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