Bitcoin recently took a nosedive, bringing the entire cryptocurrency market with it. Although some altcoins recovered from the recent drop, most—including EOS, Cardano, and TRON—remain in a bearish posture signaling a further decline.
EOS is one of the most prominent smart contract projects in the cryptocurrency industry. Born during the 2017 ICO mania the project rose $4 billion through its token offering.
However, the base structure of the project has sparked fears of centralization among investors. In terms of token ownership, many of these holders are based in China. The largest token holder, Block.one, the company behind EOS, has also been criticized for its role in the ecosystem.
As a result, EOS Tribe announced that it will move away from its candidacy as a block producer and others threatened to do the same.
On this backdrop, EOS experienced a significant decline over the last week. Technically, it seems like the move comes after an evening doji star candlestick pattern developed on its 3-day chart. This is considered a bearish reversal formation that occurs at the top of an uptrend.
Evening doji stars are composed of three candlesticks: a long green candle, a short candle, and a red candle. The combination of these three candlesticks indicate that EOS is losing its bullish momentum and indicates a reversal.
EOS indeed reversed per the bearish formation, dropping more than 40 percent to reach a low of $2.40 on Sept. 24.
Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
Credit: Source link