EOS whales accumulate with every bath; Bull Run Incoming?

EOS entered a correction phase on April 30th, during which the price fell by more than 27%. The smart contract token rose from trading at a high of $ 3.1 to a low of $ 2.3.

Despite the clear declining momentum, data show that large investors accumulate EOS with every slump. If history repeats itself, it could be a sign that Ethereum’s rival is poised for a significant move higher.

Whales fill their EOS pockets

Santiment, a behavioral analysis platform, recently found in a report that something is “brewing” with EOS. The company confirmed that there is an inverse correlation between the “investors / baby whales” and the “big boys”.

“At retail [investors] distributed EOS, whales accumulated, ”said Santiment.

In fact, on-chain metrics show that the number of addresses with 100,000 to 1,000,000 EOS increased on February 9 of this year. Since then, the number of whales behind this cryptocurrency has increased by 20% and it continues to rise.

EOS Holder Distribution. (Source: Santiment)

Although the reasons for this behavior are unknown, EOS has shown robust development activity over the past several months. The developer community behind this blockchain protocol continues to strive to expand the utility of its token despite the uncertainty in the global financial system.

Development activity isn’t necessarily a good leading indicator of price, but it does add legitimacy to these projects, which are set in a fraud-ridden industry.

EOS development activity.EOS development activity. (Source: Santiment)

As EOS solidifies its network and whales rush to get a piece of it, the price seems ready to go.

An upswing on the horizon

The sequential indicator Tom Demark (TD) is currently showing a buy-signal on the EOS 1-day chart. The bullish formation developed in the form of a red candlestick. An increase in demand around the current price level could help validate this signal.

In this case, the TD setup estimates that this altcoin can be tied for a one to four candlesticks upswing or the start of a new up countdown.

EOS US dollar price chartTD Sequential Index indicates a buy-signal for EOS. (Source: TradingView)

The retracement that EOS has been going through since late April gives more credibility to the bullish outlook and allows it to hit the 50% Fibonacci retracement level.

Based on Gann’s 50% retracement theory, this Fibonacci level provides a crucial “buy the dip” opportunity. If EOS is able to bounce off this area with enough buying pressure, it could rise quickly and make higher highs.

EOS US dollar price chartEOS is held at the 50% Fib level. (Source: TradingView)

Nevertheless, market participants have to be careful about the dangers that arise from falling below the Fibonacci retracement level of 50%. If this support barrier fails to hold the price of EOS, it could trigger a massive sell-off, pushing this cryptocurrency to Black Thursday’s low of $ 1.42.

Featured image from Unsplash

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