EOS is a blockchain platform for creating large-scale decentralized applications which directly compete with the dominance of ETH. It fundamentally aspires to provide a tool for developers to create a business-friendly platform to allow others to create decentralized applications to overcome the limitations of other blockchain platforms.
The gas fees paid on the ETH platform are much higher as of now, which is the biggest pivot for EOS. EOS uses vertical and horizontal scaling to make its applications free for customers. At the same time, its emphasis on safety and privacy has been appreciated by reviewers along the way.
EOS, at present, holds a market capitalization of $959 million. While there hasn’t been an announced or capped supply volume, the token itself carries no storage value.
Using delegated Proof of Stake protocol for transaction validation, EOS allows stakers to have a say in the governance of its blockchain and voting processes. Enough of its fundamental runnings, the token raised its first ICO of $4 billion, while the current value of this blockchain is just 25% of the same.
Quoting the famous words what is dead may never die, the fundamentals of the EOS token showcase a hard face of the current crypto innovations. With a price of under $1, EOS was a prospective token only for a couple of months between April to August 2022.
EOS token witnesses a major trendline-based rejection that would create fresh hurdles. Buyers and investors are already trapped on this blockchain as the ICO raised $4 billion, which can be equated only with a value above $4.5. Since the actual price is trading much below the set quotations, buying at the current value is like holding a falling knife.
One look at the price action is enough to justify the profit-booking stance shown by trapped buyers. While the EOS token has found buying support from the lower band of its previous consolidation zone, the outlook continues to be haunted by 100 EMA and a declining trend line.
RSI for the price action has reached a low of 45, while the MACD indicator maintains a bearish stance. As such, buying this token even for momentary gains should be identified from support level bounce back. Although the EOS token doesn’t seem suitable for long-term prospects, one should identify their risk-taking abilities before entering EOS.