EOS has been one of the hardest hit tokens during the recent Chinese exchange ban which points to its popularity in the PRC. The price recently bottomed out at 50 cents on the 15th after multiple exchanges gave notice of closure. The markets have been devastated by the recent rulings across China but this will provide an extended accumulation period for investors.
The price has been in steady decline ever since mid August and it finally stopped its losses at the 50 cent mark before popping back a little. The graph looks relatively grim, for inexperienced investors that is. Let's take a step back now...
This formation, which is called a descending wedge, usually indicates that an upward movement is imminent. The price can only fall so low before everybody realizes what a great deal it is. Even at 60 cents right now EOS is a STEAL because many ICO investors got in around 90 cents. They release 2 million EOS tokens a day rather than doing traditional coin distribution methods like mining, staking, etc. Additionally the price may remain depressed for a while longer as Chinese users dump what they can before the bans are implemented.
The previous resistance levels while EOS prices were "healthy" was around $2. The old support levels are around $1.70, $1.25 and $0.85 so now they will become resistance barriers as the price tries to break out. Keep an eye on the 50% retracement level as this is a very common retracement level after a significant move. Once we can move above the $0.85 zone then the next stop is between $1.07 and $1.25.
The massive total supply of tokens is part of the reason why the price seems to be in steady decline since they released their token. The geo-political tensions have not made things any better. EOS is patiently waiting to be noticed by the rest of the world as Chinese investors scramble to recoup what little they still can. Prices can and likely WILL go lower until the market picks it back up and puts EOS back to where it belongs. Once the China news blows over we should see a healthy recovery on many cryptocurrencies and crypto-assets.
*Never invest more than you are willing to lose and always do your own research before making any investment decisions.
(All pictures are free domain images from snappygoat.com or created by myself with the help of Coinigy and Bitfinex.)
If you would like me to do a price forecast or to discuss a certain topic let me know in a comment down below :)