EOS price weekly analysis 13 July: Big falls but some light at the end of the tunnel
A tough week sees billions wiped from EOS's market capitalisation.
Key takeaways
- A tough week seeks about 15% wiped from the value of EOS.
- Analysts are generally confident of long-term gains but the short term looks volatile.
- Trading volumes continue to be low as traders are cautious.
EOS took a hammering during the seven-day period ending on 13 July.
After starting that trading period at $8.79, it took a series of hits to fall by over $2.00 to reach $6.72, where it found a support level the market was happy with. The $7.50 mark looks like the next resistance level with the market back in the grip of the bears that held sway through June. That's a hit of over 15% in just a week.
While it looked like things were a little rosier at the start of this month, with EOS seemingly finding support at just above $9.00, it's taken the biggest hit of all the top ten coins by market capitalisation. Trading volumes are low, well down from the highs we saw back in April when 24-hour trading volumes nudged the $4.8 billion level. The 24-hour trading volume is now below $800 million.
Despite the big falls we saw last week, many analysts are showing confidence in the cryptocurrency, saying that the defence of EOS at the $6.80 level will deliver a bounce.
If the $9.45 barrier can be crossed again, which is a long way off, then a move towards $15 is on the cards according to Cointelegraph. But they add that if there's a break below $6.89, the next support on the downside is at $5.96. In other words, the good news is very good, but the bad news is pretty ugly.
That road to a very optimistic $15 will be met by some resistance a little closer to the current price. Global Coin Report suggests that $7.10 is a barrier that needs to hold along that road with $7.65 the next hurdle.
The last couple of weeks have been tough going for traders holding EOS. The 14-day simple moving average (SMA) is below the 50-day SMA suggesting the bears have hold of things at the moment. That downward pressure, according to CryptoGlobe, means there may be some "decent" entry points for long-term HODLers to enter the market.
Disclosure: At the time of writing, the author holds BTC, EOS, ETH, XLM, ETN, LTC, ADA and XRP.
Crypto explained
Latest cryptocurrency news
- Bitcoin’s price continues to rise despite transaction fees at record high
- Ethereum price rallies once again after recent flash crash
- Can Dogecoin’s price continue to soar despite a marketwide correction?
- Bitcoin’s price plunges 10% before rebounding – market witnesses massive liquidations
- Ethereum price surges to all time high before Berlin hardfork
Picture: Shutterstock
