EOS has formed lower highs and higher lows recently, consolidating inside a symmetrical triangle pattern. A downside break could lead to a drop to the 6.0000 support while a break higher could lead to a rally to the 20.000 resistance.
The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. In other words, a break lower might be more likely to happen, especially since the 100 SMA dynamic inflection point lines up with the triangle top.
RSI is pointing up, though, so there may be some buying pressure left. Similarly, stochastic is heading up so EOS could follow suit.
Much hinges on the EOS mainnet launch though, as many fear that it might be delayed by the bugs recently discovered. As it turned out, a Chinese cybersecurity firm saw “epic vulnerabilities” that could have allowed an attacker to gain control of the network’s nodes by uploading a malicious smart contract to the EOS network. Having done so, they could manipulate transactions or use the nodes as a de facto botnet to mine another cryptocurrency.
However, developers said that this wouldn’t prevent them from shipping the software on time. In a tweet, they noted:
Media has incorrectly reported a potential delay in the release of EOSIO V1 due to software vulnerabilities. Our team has already fixed most and is hard at work with the remaining ones. EOSIO V1 is on schedule; please stay tuned to our EOSIO channels for official information.
For now, investors appear to be wary of future updates, although EOS lead developer Daniel Larimer was able to patch the vulnerability quickly after identification. The mainnet launch will allow EOS to be independent of the ethereum network and could open up a host of benefits for the altcoin.