EOS Forecast: Trying To Build Base

2022-06-01 04:10:27

(MENAFN- Daily Forex) EOS initially fell a bit on Tuesday but found a little bit of buying pressure near the $1.30 level. The reality isn't so much that EOS is something that is suddenly in demand, it has more to do with the fact that Bitcoin has balanced the bed. Remember, there is always a significant influence on the smaller markets when Bitcoin moves, so I think this is probably more or less EOS pretending like it's going to build a base.

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Having said that, the market has fallen so far that it would make sense to get a bit of a bounce. The market is still down for the session but at least it hasn't made a fresh low. The $1.50 level above will more likely than not be somewhat difficult to overcome, but if we can, the market could make a move toward the 50 -dEMA. After that, then EOS has the possibility of going to the $2.00 level.

The biggest problem with this is the fact that crypto is in shambles, and the risk appetite of traders around the world has just been annihilated. It's difficult to imagine that EOS will take off to the upside for any significant move unless of course people are willing to put a lot of money into risky assets, and EOS is pretty far out on that spectrum. More likely than not, your best case scenario is going to be that the market goes back and forth in this general area and kills a little bit of time.

If we break down below the $1.25 level, that will open up a bit of a“trapdoor” for EOS to continue falling. At that point, there is not much that's going to stop it from dropping down to a value of $1.00 initially, and then more likely than not, much lower than that. Keep in mind that the value of the US dollar continues to climb over the longer term so that in and of itself will have a significant effect on what happens in this market, as all prices are quoted in those same US dollars. Crypto has a serious problem right now, so unless you are a longer-term investor that is trying to build up a huge position , there's no point in buying anything.

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