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EOS Temporarily Becomes 4th largest Cryptocurrency by Market Cap

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  • Thomas Hughes
    ⭐ Features

    In the aftermath of the weekend sell-off, EOS briefly surpassed Bitcoin Cash to become the 4th largest digital currency

EOS Temporarily Becomes 4th largest Cryptocurrency by Market Cap
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In the aftermath of the weekend sell-off, EOS surpassed Bitcoin Cash to become the 4th largest digital currency. However, the “flipping” was short-lived, mainly because Bitcoin Cash recovered almost 25% over the last 24 hours, while EOS posted just a 4.49% gain over the same period. Volumes remain low for both currencies, which is true for the entire market — just below $19 billion over a 24-hour period.

Charts at a Glance – EOS/USD

image

The pair continued its selloff and dropped below the previous support at 3.50, reaching a low at 3.09 on Bitfinex and 2.91 on Kraken. After the low was created, the price bounced and retraced higher, but it found resistance at the previous support, which also coincides with the middle line of the Bollinger Bands. From here, there’s a high probability of another drop that will break the 3.00 mark, headed for 2.50.

While the main outlook is bearish, the Relative Strength Index on the daily chart is oversold, which opens the door for a stronger retracement, possibly to the upper Bollinger Band. As long as a higher high and a higher low are not printed on the chart, price action favours the sell side.

Support zone: 3.00

Resistance zone: 3.50 followed by upper Bollinger Band

Most likely scenario: drop through support

Alternate scenario: choppy price action with light upside movement

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About the author

Thomas Hughes is an executive editor of U.Today. He is a skilled cryptocurrency trader and technical analyst deeply immersed into the cryptocurrency & blockchain technology area.

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Why China Fever on Bitcoin is Already Dropping After 1 Month of Blockchain Optimism

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  • Joseph Young
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    The so-called “China fever” on crypto like bitcoin has noticeably declined since President Xi’s speech on October 28.

Why China Fever on Bitcoin is Already Dropping After 1 Month of Blockchain Optimism
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Contents

Since Chinese President Xi Jinping expressed his support for blockchain technology on October 28, the so-called “China fever” on crypto like bitcoin has noticeably declined.

The price of bitcoin fell from around $10,600 to $8,500 and cryptocurrencies that are known have Chinese development teams such as NEO, Ontology, and TRON have slightly increased over the past three weeks, but not enough to be described as a speculative mania.

Why demand for bitcoin and other cryptocurrencies is not on the rise

Following the newly established vision of the Chinese government to push the development of blockchain technology, expectations for strengthened momentum of the cryptocurrency market rapidly increased.

Initially, such expectations combined preceded an abrupt overnight increase in the price of bitcoin to above a key “psychological level” at $10,000, but the price fell back to “pre-Xi” levels in a relatively short period.

Global markets analyst Alex Krüger said:
“Have mainland China investors increased their demand for bitcoin? BTC volumes quickly dropped back to pre Xi news levels; online searches in China are back down to pre Xi news levels; website traffic for exchanges catering to China barely changed since the news.

The ‘Chinese tokens,’ NEO, ONT and TRX, have all done well since the aftermath of the news, while VET (a supply chain oriented blockchain) has been cruising on China news. Don't think though this is a sign of a ‘speculative fever’ of any kind.”

The analyst emphasized that prior to the statement of President Xi on the focus of China to facilitate the development and implementation of blockchain technology, the penetration of cryptocurrencies in the region was already high.

Also, most mainland Chinese cryptocurrency investors are said to have been trading digital assets through overseas markets like Hong Kong, purchasing stablecoins like Tether with the Hong Kong dollar.

Hence, it is possible that the public already anticipated the government of China to eventually reiterate its plans to encourage blockchain development with the People’s Bank of China (PBoC) consistently stating that its plans for a state-operated digital currency is in the works.

“It is without doubt that with the announcement of Libra, governments, regulators and central banks around the world have had to expedite their plans and approach to digital assets,” Dave Chapman, BC Technology Group executive director, said.

Is this the end of the Xi-effect?

Some technical analysts have suggested that the upside movement of bitcoin to $10,600 in late October may have not been primarily fueled by the optimism around China’s blockchain development initiative, and that a cascade of short liquidations amidst a build up of sell pressure caused the rally.

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About the author

Joseph Young is an analyst based in South Korea that has been covering finance, fintech, and cryptocurrency since 2013. He has worked with various recognized publications in both the finance and cryptocurrency industries.

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