È EOS the next criptovaluta who will be able to break away from the mass of digital assets, to take on a major role?
Launched in mid 2017, the criptovaluta seems to be ready to hit new highs and - according to a recent report by Coindesk - at the moment it is the fifth most important digital currency in the world by market capitalization, currently trading for just over $ 17 per token, against a historic high of $ 23,03, touched on the Exchange Bitfinex last April 29. After this high, EOS dropped to $ 15,71, for one retracement 38,2% from the rally that began on March 18, which produced the aforementioned maximum of April 29. Could this move indicate that EOS is actually ready for more peaks?
The Fibonacci retracement
Il retracement di Fibonacci 38,2% is often interpreted as one of the three "golden" ratios used in technical analysis (the others are 50% and 61,8%): these are levels that are generally associated with strong supports / resistance, so much so that if a price breaks below the 38,2% level, the next threshold is 50%, followed by 61,8% and so on.
Of course, this is not always the case. Also because, on the other hand, if the support level of 38,2% manages to contain the movements, it is easily transformed as a clear sign of the fact that the "withdrawal" of the price has now run its course.
Well, for the moment EOS it managed to stay within the 38,2% support level. It reached this threshold around May 1st and spent above this threshold last week. At the same time, daily trading volumes have declined significantly, possibly suggesting that the reason for this price retracement has to do with investor behavior seeking to make a profit.
Analysts Coindesk they believe that "long-term momentum studies tend to be bullish", with EOS being well above the 20 and 50 day moving average levels.
What to do with EOS?
But what to do then with EOS? According to analysts, the cryptocurrency could retest la threshold di 20 dollars in the next days. Should it succeed in exceeding this threshold, a rally could occur that can bring the value of the currency above the year high to $ 23,03. The cryptocurrency is also planning a launch of its main network for June 2nd. This is an event highly anticipated by investors and the wider cryptocurrency community, and which could help push the value beyond the previous high.