By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
This week, the EOS cryptocurrency resumed declining, and on Tuesday, December 10th, it is generally trading at $2.65.
On D1, the downtrend is slowing down, and a convergence is forming on the MACD. As the main goal of the developing trend, we should regard the fractal minimum of $1.55. However, keeping in mind the convergence, a breakout of the current resistance level at $3.35 may signal a reversal and the development of a new bullish cycle.
On H4, after a correctional rise to 38.2% Fibo, the quotations started declining to the minimum of $2.35. Upon breaking the minimum, the market may head for the support level of the current channel, which is $2.01. The Stochastic, with its Black Cross, supports the idea of a new wave of declining to the minimum.
The crypto department of the rating agency Weiss Ratings has lowered the EOS project to level C from the previous level B. It is known that the main reason for the worsening of the project’s position became its excessive centralization.
In Weiss Ratings, they say that about a hundred of EOS holders – which is about 0.01% of the investors in the project – control 68% of voices, which means they can influence the decision-making process about the project development. Centralization is what the crypto world is avoiding, and it does not enhance the EOS attractivity.
Apart from this, Weiss Ratings noted the lack of a solution for the problem of junk in the network – under junk we mean a large number of bots, the transactions of which halt the transactions of small EOS holders. Currently, neither the resource exchange of EOS nor the reserve for the CPU calculations has not solved the problem.
Momentarily, the lowering in the rating can hardly influence the dynamics of the coin. However, fundamentally it can give little support, which is not good.
Disclaimer: Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.