EOS has broken down below the $1.00 level, and it does suggest that the market is ready to go much lower. At this point, crypto is dead money, and smaller crypto markets such as EOS is going to continue to fall drastically. In fact, it’s likely that you are going to be better served by shorting this market than anything along the lines of buying it. In fact, I may start doing that myself.
I believe at this point it’s very likely that EOS may go to zero, or at least make a serious attempt at doing just that. After all, Bitcoin is struggling, so its difficult to imagine some of these other markets doing much. The question now is whether or not it can survive long enough to see the next “pump higher” of the crypto world. I would not be surprised at all if EOS doesn’t exist in three years. However, anything is possible so if we do sit still long enough, it might be a great “altcoin” to start accumulating at ridiculously low levels.
The EOS market has been drifting lower for several months, now that we have broken out of this previous rectangle that I’ve drawn on the chart, it’s likely that we have much further to go based on technical analysis alone. Ultimately, this is a market that I think is probably going to target the $0.75 level, followed by the $0.50 level.
On the upside, if we broke above the $1.50 level, you might have a nice bounce in the making, but it will more likely than not offer liquidity for short-sellers to get involved again. In fact, I cannot remember the last time I heard something about EOS, let alone something good. These small markets are going to get annihilated as long as Bitcoin continues to drift lower and let’s not even get started with Ethereum. Both of those markets look like they are going to lose another 50% before it’s all said and done, and therefore the outlook for a lot of the smaller markets is going to be the same: it’s a matter of whether or not they can survive the next few years. Because of this, I will be punishing markets like this via offshore levered accounts and have no interest in buying.