EOS is in a tight spot and there is a risk of it going lower long term. While EOS soared to the sky just a few weeks ago, the story has changed this week as it is now trapped in a downward trend. The bulls are having difficulties taking over the bears in the market.
EOS Price Analysis
EOS is trading within a narrow range of $10.51 – $10.67. This is quite disappointing considering that it got to $22 in April and recently launched the long anticipated Mainnet. The Mainnet launch was supposed to change everything and make way for a price hike.
If the bulls are to remain relevant in the market, they need to sustain the $9.08 low so as not to fall below this level. The immediate resistance is at $11.5.
Why is EOS Falling?
For starters, the entire cryptocurrency market is taking a hit. So, the dip in price is not limited to EOS. However, the delay of the launch and the fact that the Mainnet went offline 48 hours after it came online may also have contributed to this price crash. About 48 hours after EOS went live, all transactions froze with standby nodes struggling to fix the issue on the EOS Mainnet.
No one knows what caused the transaction freeze but EOS claims to have addressed the issue. A DDoS attack may have been responsible for the freeze. The 21 block producers as well as the standby nodes claimed that they found a method to unpause the chain about one hour after it was identified. They also said that it would take about 6 hours for normal functions to start.
EOS has suffered some setbacks over the past few weeks but hopefully, the future will be bright for this and other coins in the industry. The next few days of trading will determine if EOS bulls will vanquish the bears.