The move of EOS from the blockchain of Ethereum to its own Mainnet is only a few days away, yet its digital currency appears to be indecisive on the price charts. The digital currency had rallied almost 500% over the six-weeks to the 29th of April as the launch of the Mainnet news surged investor excitement.
The general rally across the entire digital currency market in the month of April only added to the bullish sentiment. Nevertheless, since on the 24th of May, EOS has been restricted to a slender trading range of $10 to $15, according to Bitfinex.
The Security Flaws in the EOS Platform
The signing out of investor enthusiasm might be as a result of the security flaws identified in the platform of EOS. On Tuesday, an internet security company based in China – Qihoo 360, said they have told developers of potentially serious vulnerabilities in the EOS platform, which seems to have been patched now.
In response, the value of the digital currency declined from $12 to $10.7, but it later regained the lost ground. Also, the company’s lack of responsiveness to situations like general confusion over the procedure of voting for block producers may have taken the glory off the launch on the 2nd of June for investors.
The Daily Chart of EOS/USD
The daily chart of EOS against the US dollar indicates that the digital currency is stuck in a falling channel – a bearish trend. In addition, the failure of EOS to retake the rising trend line on the 28th of May is an encouraging sign for the bears.
Nevertheless, the outlook would turn bearish just beneath the $10.3 mark. In such a case, the digital currency will likely find acceptance beneath the rising support line (presently at $9.6) and drop to $9.72. Also, a convincing move above the rising trend line hurdle would revive the bullish outlook and pave way for $20.