EOS Price Analysis: Waiting for a Consolidation Break

EOS Price Analysis: Waiting for a Consolidation Break 13

EOS has formed lower highs and higher lows to consolidate inside a symmetrical triangle visible on its 1-hour time frame. Price is approaching the peak of the formation to show that a breakout is due soon.

The 100 SMA is below the longer-term 200 SMA so the path of least resistance is to the downside. In other words, there could be stronger odds of a downside break happening than an upside move. Closing below the 3.5000 mark could be followed by a drop that’s the same height as the triangle, which spans 2.8000 to around 4.5000.

RSI is heading lower to signal that sellers have the upper hand. The oscillator has yet to cross below the center line and doing so would confirm that bearish momentum is picking up. Stochastic is also heading south so price could keep following suit. This indicator is already closing in on the oversold region, though, so bears might need to take a break soon.

EOS Price Analysis: Waiting for a Consolidation Break 14

Concerns about vulnerabilities in the EOS network might drag price lower as a Chinese cybersecurity firm, claims to have found a security vulnerability that allows users to register EOS deposits without actually transferring the funds.

SlowMist discovered this potential security threat and OKEx exchange verified it. According to the cybersecurity firm’s blog post:

The SlowMist Security Team has confirmed that the real attack has occurred, but it should be noted that: this time the “false top-up” of EOS attack is similar to the USDT “false top-up” disclosed previously by SlowMist Security Team, and similar as the Ethereum token “false top-up”.

Apart from that, the company is also dealing with rumors that an EOS user named “f***hacker.x” succeeded in creating a transaction for 1 trillion EOS tokens or around $3 million. However, this transaction reportedly failed due to its size being far greater than the total circulating EOS supply.

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.