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EOS Trading Back Within Symmetrical Triangle Pattern, Huobi Wallet Adds EOS Support

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It appears the bearish move for EOS on Monday may have just been a shake-out, as the price has quickly recovered and is now trading back within the symmetrical triangle pattern it broke down from.

The price may have been boosted by an announcement from one of the world’s leading blockchain company’s, Huobi Group, who have now added support for EOS on the Huobi Wallet. Huobi Group VP Livio Weng commented on the announcement:

“EOS is among the most important Delegated Proof-of-Stake (DPoS) currencies so it was a natural choice for us to include on Huobi Wallet.”

He went on to state that Huobi Wallet has more upgrades planned, saying:

“Going forward, the community can expect to see more currencies added at an accelerated rate. We also plan on establishing additional partnerships with a range of decentralized apps (Dapps) developers, giving our users greater access to an expanded range of products and services.”

EOS is currently up 1.84% over the past 24 hours according to CoinMarketCap. We take a look at an EOS price chart and analyze where things could go from here:

EOS Daily Chart – Source: Tradingview.com

After a steep depreciation since the mainnet launch in June, EOS price action eventually started to flatten out. It has been forming a series of higher lows since mid-August, but this has also been accompanied by a series of lower highs giving rise to the symmetrical triangle pattern we are seeing.

Triangle patterns typically result in a breakout, but EOS is now approaching the end of the pattern and has been trading in a tight range on low amounts of volume.

What is giving rise to the triangle pattern forming? There a few potential scenarios.

Scenario one is that price action is arriving at a natural bottoming out point. Price has depreciated around 65% from the mainnet launch and investors may be no longer willing to let the price drop further.

Scenario two is traders are still undecided about the project. The daily RSI for the project is trading near 50 showing some indecision in trading activity. Although announcements such as Huobi adding support for the project on its wallet are positive for EOS, EOS is tackling a difficult problem in trying to apply blockchain to businesses. The technology is still in its early days, and the triangle pattern forming could be a reflection of the uncertainty of investors.

The third scenario is that EOS is simply mirroring Bitcoin. The market leader Bitcoin represents over 53% of the market capitalization of cryptocurrencies, and its movements have a significant impact on those of altcoins. Bitcoin has also been forming a series of higher lows and lower highs giving rise to a triangle pattern. This third scenario seems the most likely and will be put to the test when Bitcoin moves out of its triangle pattern.

Bitcoin Daily Chart – Source: Tradingview.com

Key Takeaways:

  • Huobi adds support for EOS to its Huobi Wallet.
  • EOS has been forming a series of higher lows and lower highs since mid-August giving rise to a Triangle pattern.
  • There are a number of scenarios as to why this triangle pattern is forming and the possibilities for it playing out.
DISCLAIMER: Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell or hold and should not be taken as an endorsement or recommendation of a particular asset.

EOS Trading Back Within Symmetrical Triangle Pattern, Huobi Wallet Adds EOS Support was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.