(MENAFN- Daily Forex) EOS had a very slow day on Friday as cryptocurrency in general continues to be a bit of a wasteland. EOS is currently hovering right around the $1.00 level, an area that could cause a bit of psychological resistance. That being said, there's nothing that really means anything to the market with the $1.00 level than the fact that the number is a round figure.

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EOS, of course, is going to suffer right along with the rest of crypto, because there's nothing special about this coin to differentiate it from anything else right now. Crypto is a mess mainly due to the fact that the entire space is a solution looking for a problem. While there will be some survivors of this“crypto winter”, there are going to be a lot of losers. In fact, I think a lot of the coins that we talk about now won't be around next year. Whether or not EOS will be or not is a completely different question, but I don't particularly see any reason why it is going to be the big winner.

In the short term, we could get a bit of a relief rally, but I think this is a trading opportunity more than anything else. If we were to break to the upside, then the 50-day EMA comes into play as resistance. I would like to see a little bit of a bounce so that we could reach that area and then see show signs of exhaustion. I would not hesitate to short in that general vicinity, especially if I could get my hands on leverage to do so.

On the other hand, we could break down below the $0.82 level, the EOS downtrend will continue in earnest, as there's no reason to think that there are a ton of buyers underneath waiting to pick the market up. Whether or not the downtrend continues or we get a bounce is a bit of an unknown at the moment, so pay attention to the next move, because it should give you a bit of a“heads up” as to what we could do next. Regardless, I think the one thing you can probably count on is a lot of volatility and noise, so make sure that you can handle that as this market will probably be very violent once it finally gets moving.

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