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EOS price weekly analysis 13 July: Big falls but some light at the end of the tunnel

Anthony Caruana 16 July 2018 NEWS

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.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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