I think the one thing you can probably count on is a lot of volatility and noise, so make sure that you can handle that as this market will probably be very violent once it finally gets moving.

EOS had a very slow day on Friday as cryptocurrency in general continues to be a bit of a wasteland. EOS is currently hovering right around the $1.00 level, an area that could cause a bit of psychological resistance. That being said, there’s nothing that really means anything to the market with the $1.00 level than the fact that the number is a round figure.

EOS, of course, is going to suffer right along with the rest of crypto, because there’s nothing special about this coin to differentiate it from anything else right now. Crypto is a mess mainly due to the fact that the entire space is a solution looking for a problem. While there will be some survivors of this “crypto winter”, there are going to be a lot of losers. In fact, I think a lot of the coins that we talk about now won’t be around next year. Whether or not EOS will be or not is a completely different question, but I don’t particularly see any reason why it is going to be the big winner.

In the short term, we could get a bit of a relief rally, but I think this is a trading opportunity more than anything else. If we were to break to the upside, then the 50-day EMA comes into play as resistance. I would like to see a little bit of a bounce so that we could reach that area and then see show signs of exhaustion. I would not hesitate to short in that general vicinity, especially if I could get my hands on leverage to do so.

On the other hand, we could break down below the $0.82 level, the EOS downtrend will continue in earnest, as there’s no reason to think that there are a ton of buyers underneath waiting to pick the market up. Whether or not the downtrend continues or we get a bounce is a bit of an unknown at the moment, so pay attention to the next move, because it should give you a bit of a “heads up” as to what we could do next. Regardless, I think the one thing you can probably count on is a lot of volatility and noise, so make sure that you can handle that as this market will probably be very violent once it finally gets moving.

EOS initially fell a bit on Tuesday but found a little bit of buying pressure near the $1.30 level. The reality isn’t so much that EOS is something that is suddenly in demand, it has more to do with the fact that Bitcoin has balanced the bed. Remember, there is always a significant influence on the smaller markets when Bitcoin moves, so I think this is probably more or less EOS pretending like it’s going to build a base.

Having said that, the market has fallen so far that it would make sense to get a bit of a bounce. The market is still down for the session but at least it hasn’t made a fresh low. The $1.50 level above will more likely than not be somewhat difficult to overcome, but if we can, the market could make a move toward the 50 -dEMA. After that, then EOS has the possibility of going to the $2.00 level.

The biggest problem with this is the fact that crypto is in shambles, and the risk appetite of traders around the world has just been annihilated. It’s difficult to imagine that EOS will take off to the upside for any significant move unless of course people are willing to put a lot of money into risky assets, and EOS is pretty far out on that spectrum. More likely than not, your best case scenario is going to be that the market goes back and forth in this general area and kills a little bit of time.

If we break down below the $1.25 level, that will open up a bit of a “trapdoor” for EOS to continue falling. At that point, there is not much that’s going to stop it from dropping down to a value of $1.00 initially, and then more likely than not, much lower than that. Keep in mind that the value of the US dollar continues to climb over the longer term so that in and of itself will have a significant effect on what happens in this market, as all prices are quoted in those same US dollars. Crypto has a serious problem right now, so unless you are a longer-term investor that is trying to build up a huge position, there’s no point in buying anything.