EOS Network, a popular open source blockchain platform that prioritizes High performance and security, it has recently seen a sharp price drop. tThe asset is showing bearish sentiment in the 30-day timeframe.
The price of EOS is down 14.19% in the one-month data from CoinMarketCap. This indicates that bears have dominated the market since the last 30 days of the trading session. This shift in market sentiment raises questions about what lies ahead for EOS.
EOS Facing High Downward Momentum, Further Price Drops, Or Possible Reversal?
Bearish sentiment and loss of control by the bulls had a noticeable impact on the price of EOS. The cryptocurrency has seen a bearish trend, with lower volumes and increasing selling pressure.
It is worth noting that the 24-hour system trading volume It is down by 13.29% today, May 29, 2023, and its market value is down by 1.32%. As of the time of writing, EOS is down 1.28% at $0.89.
This trend reflects a shift in market dynamics as investors become more cautious and start selling their EOS holdings.
Despite the prevailing downtrend, potential catalysts could change the course of EOS. On May 26, the EOS Network shared the potential Rising news about its partnership with Hypha DAO and an initiative called the Beta Program.
The EOS network claims that the beta program It will offer a set of pre-made templates designed to meet the needs and goals of different companies. Overall, this news could lead to a positive market impact on the EOS price and market sentiment.
Positive development and partnership for EOS can attract new buyers, increase demand, and increase prices. Also, fear of missing out (FOMO), a psychological phenomenon, can create a buying frenzy and push the price higher more quickly.
EOS price has formed a double bottom pattern
In this sense, EOS/USDT has formed a chart pattern with a double bottom, indicating a possible uptrend move soon. The double bottom pattern is a bullish reversal pattern that usually forms after a prolonged decline in asset prices.
Confirmation of the double bottom pattern occurs when the price of an asset breaks above the resistance level formed by the top between the two bottoms. This breakout confirms the reversal signal and indicates a higher probability of an upcoming uptrend.
EOS is important resistance level At $0.931, it is a major impediment to the potential upward movement.
Bollinger Bands and the possible directional reversal of the MACD signal
The asset is currently oscillating between the upper band and the middle band of the Bollinger Bands Indicator. This indicates an increase in buying pressure and an increasing bullish momentum.
In addition, the Moving average convergence/divergence (MACD) is currently above its signal line, which indicates bullish momentum. This indicates that buyers are gradually taking control of the market, and a trend reversal may be possible soon.
As shown in the above chart, the histogram is above zero and has strong green bars, which confirms the bullish trend in the market.
Featured image via Pixabay and chart from TradingView