The EOS cryptocurrency has been one of many extra attention-grabbing performers in August. It loved a powerful rally forward of its rebranding however has since then let go of many of the good points within the final 10 days.
Understanding its newest worth motion might assist formulate a good short-term outlook. On the time of writing, EOS was down by roughly 5.2% within the final 24 hours and 23.5% within the final seven days. It had beforehand rallied by about 130% from its present 2022 backside to the current high.
The most recent retracement thus displays the promoting strain from these cashing out after the rally.
EOS’s robust upside was backed by pleasure in regards to the rebranding to Antelope. A powerful uptick occurred previous to the rebrand date, thus forming a “purchase the rumor, promote the information” kind of worth attribute.
Supply: TradingView
Moreover, the value as of 31 August, was transferring inside Fibonacci zones, and this offers a bonus so far as predicting the subsequent final result is anxious. EOS’ downward trajectory was going through friction on the 0.236 Fibonacci degree.
Each the Relative Power Index (RSI) and the Cash Circulation Index (MFI) stood across the 50% degree, therefore an elevated likelihood of a bullish pivot.
Supply: TradingView
Ripe for the upside?
The alignment of a number of indicators might counsel that EOS is perhaps able to regain its bullish trajectory. It must safe a number of shopping for strain however its social metrics counsel, that shouldn’t be a lot of an issue.
In actual fact, EOS’ social dominance and social quantity metrics registered a notable spike in exercise between 30 and 31 August. This final result additional strengthens the case for a possible pivot.
Supply: Santiment
EOS’ weighted sentiment additionally highlighted a powerful shift available in the market sentiment since 29 August.
In the meantime, its developer exercise metric demonstrated a rise in exercise within the final 5 days. A constructive improvement contemplating its trajectory earlier than mid-August.
Supply: Santiment
Traders watch-out
The elevated improvement exercise might additional cement the present short-term outlook. Nonetheless, traders also needs to contemplate the general market situation.
Notably, some liquidity returned to the market between 30 and 31 August however the international crypto market nonetheless lingers someplace beneath $1 trillion.
This implies most traders are nonetheless on the fence about shopping for again in. On the flip facet, the bettering sentiment after the newest draw back is perhaps an indication of what to anticipate within the first week of September.