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The EOS cryptocurrency has been one of many extra fascinating performers in August. It loved a robust rally forward of its rebranding however has since then let go of a lot of the positive factors within the final 10 days.
Understanding its newest worth motion might assist formulate a good short-term outlook. On the time of writing, EOS was down by roughly 5.2% within the final 24 hours and 23.5% within the final seven days. It had beforehand rallied by about 130% from its present 2022 backside to the current prime.
The newest retracement thus displays the promoting stress from these cashing out after the rally.
EOS’s sturdy upside was backed by pleasure in regards to the rebranding to Antelope. A powerful uptick occurred previous to the rebrand date, thus forming a “purchase the rumor, promote the information” sort of worth attribute.
Supply: TradingView
Moreover, the worth as of 31 August, was shifting inside Fibonacci zones, and this supplies a bonus so far as predicting the following consequence is anxious. EOS’ downward trajectory was dealing with friction on the 0.236 Fibonacci degree.
Each the Relative Energy Index (RSI) and the Cash Movement Index (MFI) stood across the 50% degree, therefore an elevated chance of a bullish pivot.
Supply: TradingView
Ripe for the upside?
The alignment of a number of indicators might counsel that EOS may be able to regain its bullish trajectory. It should safe a variety of shopping for stress however its social metrics counsel, that shouldn’t be a lot of an issue.
In truth, EOS’ social dominance and social quantity metrics registered a notable spike in exercise between 30 and 31 August. This consequence additional strengthens the case for a possible pivot.
Supply: Santiment
EOS’ weighted sentiment additionally highlighted a robust shift out there sentiment since 29 August.
In the meantime, its developer exercise metric demonstrated a rise in exercise within the final 5 days. A optimistic improvement contemplating its trajectory earlier than mid-August.
Supply: Santiment
Buyers watch-out
The elevated improvement exercise might additional cement the present short-term outlook. Nonetheless, traders must also take into account the general market state of affairs.
Notably, some liquidity returned to the market between 30 and 31 August however the international crypto market nonetheless lingers someplace beneath $1 trillion.
This implies most traders are nonetheless on the fence about shopping for again in. On the flip aspect, the enhancing sentiment after the most recent draw back may be an indication of what to anticipate within the first week of September.
