EOS whales are piling up in preparation for a big price move

The central theses

  • The key figures for the social commitment of EOS go through the roof.
  • In the meantime, the number of addresses with 100,000 to 10,000,000 EOS has increased rapidly.
  • This unusual activity in the chain suggests that EOS is set for volatility, but may not be in the direction most people expect.

Share this article

Large investors appear to have accumulated EOS over the past few months, suggesting that a large price move may be underway.

Unusual on-chain activity

Data from Santiment shows that EOS social activity has had a series of peaks since mid-April, reaching levels not seen in more than a year.

During the first quarter of 2020, the number of EOS mentions on more than 1,000 crypto social media channels averaged 50.

But on April 13, the social engagement metrics rose to 416.

EOS Social Volume by Santiment

Around the same time, great players began to accumulate this altcoin heavily.

The number of addresses with 100,000 to 1,000,000 EOS, which can be described as “baby whales”, has doubled since mid-February.

Meanwhile, the number of “big whales” with 1,000,000 to 10,000,000 EOS has risen by a whopping 22% within the same period.

Distribution of EOS holders by SantimentDistribution of EOS holders by Santiment

This type of behavior suggests that EOS may be preparing to push its price further up before they find a reasonable level to dump their holdings on unsuspecting investors.

While the optimal price level for them cannot be determined, a look at the specs can help paint a better picture.

EOS could be ready for an uptrend

EOS is one of the few top cryptocurrencies by market capitalization that has not been able to fully recover from the losses incurred during the market collapse in March.

This cryptocurrency is still down 18% since Black Thursday.

The slow upward movement in prices may not encourage some investors, but others see it as an ideal entry point as the coin could continue to grow.

This is in line with the forecast presented by the TD sequence indicator on the EOS 1-day chart.

The TD setup recently sent a buy signal in the form of a red nine candlestick. The bullish pattern estimates an upswing of one to four candles or the beginning of a new upward countdown.

Since the current candle holder is a green candle, a subsequent green candle trade above the closing price of the current candle could serve as confirmation of the optimistic outlook.

EOS US dollar price chartEOS / USD on TradingView

In this case, another increase in buying pressure behind EOS could push the Fibonacci retracement level up 61.8% or even 50%.

These resistance barriers are at $ 3 and $ 3.5, respectively.

EOS US dollar price chartEOS / USD on TradingView

However, an increase in supply could invalidate the bullish view and bring EOS back to the Fibonacci retracement level of 78.6%.

Breaking below this support area could trigger a steeper decline, with this cryptocurrency bouncing back to Black Thursday’s low of $ 1.4.

Go forward

The cryptocurrency market seems overwhelmingly bullish after Bitcoin added another halving to the history books.

Since then, BTC has risen more than 21%, suggesting that this may have been the catalyst for a new bull market. This could also indicate why so many investors are turning to altcoins like EOS.

However, as Bitcoin hits a multi-year resistance trendline, industry celebrities like Tone Vays claim that it could trigger a strong correction affecting all assets in the crypto market.

If BTC does backtrack, the rest of the market will likely follow suit. Considering such a bearish premise, the social volume of EOS shows that high chatter and price are inversely correlated. It might even be a justification for keeping this altcoin long.

In fact, whales could actually prepare to dump their stocks earlier than expected.

EOS Social Volume by SantimentEOS Social Volume by Santiment

Hence, the Fibonacci retracement level of 78.6% at $ 2.3 plays an important role in the trend of EOS.

Staying above this level of support will make the bullish outlook more believable, while breaking below this level may signal the start of a steep decline.

Market participants have often talked about the pump before the halving and the dump afterwards.

For this reason, it is very important to be careful with the price development of the market in the next few days so as not to get on the wrong side of the trend.

OKCoin logo

OKCoin banner

Share this article

The information on or through this website is obtained from independent sources which we believe are correct and reliable. However, Decentral Media, Inc. does not warrant or guarantee the currency, completeness, or accuracy of any information on or through this website. Decentral Media, Inc. is not an investment advisor. We do not provide personalized investment advice or other financial advice. The information on this website can be changed without prior notice. Some or all of the information on this website may be out of date, incomplete or inaccurate. We may, but are not required to, update outdated, incomplete, or inaccurate information.

You should never make an investment decision for an ICO, IEO or any other investment based on the information on this website and you should never interpret or otherwise rely on any information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional when seeking investment advice on an ICO, IEO or any other investment. We do not accept any compensation for the analysis or reporting of ICO, IEO, cryptocurrency, currency, token sales, securities or goods.

See full terms and conditions.

Comments are closed.