The EOS Mainnet launch didn’t go as smoothly as planned. Apart for the delay in the launch, there was also voting delays which made the EOS community concerned and prevented the Mainnet from going live even after it was launched. As soon as the Mainnet went live, the price started recovering but the recovery was limited and did not get to the 61.8% Fib retracement level. This may be partly due to the fact that the EOS community is still concerned about decentralization issues facing the blockchain.
EOS reached a recent low of $9.02 on the 13th of June but gained up to 7% daily after that. However, just within the beginning of today’s trading session and now, EOS has lost 4% of its value. The average trading volume is $1.2 billion and the market value is around $9.8 billion.
Bitfinex is recording the highest number of EOS transactions and this is no surprise since Bitfinex is one of the largest EOS block producer.
EOS was created to be a better version of the second largest cryptocurrency in the world as per market capitalization, Ethereum. However, members of the EOS community are concerned about the network’s control by whales which are not in line with the principles of decentralization.
About 75% of EOS tokens are held under the control of 100 holder and this increases the risk of coordinated actions. This risk is especially increased now that only 21 block producers have the power to verify transactions. The system is more prone to corruption and biased decisions.
EOS Price Analysis
From the price charts of EOS and the USD, the price recovery was capped near the 61.8% Fib retracement level which is $11.22. As soon as it clears, the upside swing might take the price up to $13.46 and higher to $14.22. The downside support is at $10.80 which is the 100 day moving average followed by $9.8 which is the 200 day moving average.