Chart for EOS/USD (1W)
Cryptocurrency markets plunge deep in the red, dancing to the tune of Bitcoin (BTC). Eos (EOS) investors are not moved by this confusion. In fact, as the above weekly chart for EOS/USD shows, the price of Eos (EOS) has not corrected the same way as the rest of the market. A lot of altcoins have formed bullish cypher patterns during the correction. However, unlike them, Eos (EOS) did not bother to complete its bullish cypher pattern. It snuck out in the middle of the correction and took off to test the 10 Week EMA. It has currently faced a strong resistance at this point. However, it is pertinent to note that the 21 Week EMA and 10 Week EMA have come incredibly closer. If Eos (EOS) breaks above the 10 EMA with ample strength it can break straight through the 21 EMA.
Breaking above the 21 Week EMA will open many doors for Eos (EOS). Institutional investors are already betting big on Eos (EOS). If EOS/USD breaks above the 21 Week EMA there is a highly likelihood that it will keep on rising whether Bitcoin (BTC) falls or trade sideways. It is hard to understand the reason behind this level of optimism in the case of Eos (EOS). However, investors seem to have bought the idea that Eos (EOS) could be the next Ethereum (ETH). Whether we need another Ethereum (ETH) or not is another debate. However, it is important to mention that Ethereum (ETH) has a lot of flaws that are only coming to light. Eos (EOS) following in the footsteps of Ethereum (ETH) is only creating a similar platform.
Chart for EOS/BTC (1W)
Eos (EOS) like Ethereum (ETH) is focused on a large number of Dapps (i.e. quantity over quality). Eos (EOS) just like Ethereum (ETH) is very centralized. Short term, this is beneficial for Eos (EOS) as there is vested interest to promote the project. Moreover, tight centralized control leaves little room for disagreement. But is this what we want more of? Do we need another Ethereum (ETH)? Sure, we will see some Dapps being built on Eos (EOS) for now as they would want to capitalize off its publicity, but very soon they would want to switch away from Eos (EOS). As we have seen in the case of Ethereum (ETH), developers are not interested in the centralized control over their Dapps.
Some people have called Eos (EOS) a scam. This is not a scam where they would take your money and run. Those are amateur scams. Their days are gone. Now, we will see more elaborate scams; scams which will siphon off money from the crypto community based on false perceptions. I’m not saying Eos (EOS) is one of them although if you study Eos (EOS) closely, you will find little reason to doubt that. However, I believe that it is still too early to be jumping to conclusions, but investing in something just because it seems like a hot investment or because it paints a colorful picture is wrong. As responsible members of the crypto community, we need to do our due diligence and research before investing in projects, so that only those projects that are beneficial to this space in the long run can succeed.
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