EOS Analysis
  • EOS has recently released a new referendum tool for token holders.
  • The market is currently trading at resistance at $2.35.
  • Support moving forward – $2.24, $2.15, $2.02, $2.00, $1.90, $1.74, $1.64.
  • Resistance moving forward – $2.35, $$2.54, $2.56, $2.87, $3.00, $3.19, $3.68.

EOS have recently released a brand-new referendum tool which allows EOS token holders to vote for proposal changes which have the ability to change the EOS governance structure.

The referendum tool has been well received by the community, as it gives more power to token holders through the power of voting. Previously, token holders could only vote for Block Producers within the EOS network within an election format, who would maintain the EOS blockchain and produce blocks for the network. However, the election had a low turnout, with less than 50% of the tokens being staked to vote within the election.

As of January 11, after 16 Block Producers voted for the referendum tool, it went live. It has been described as the cornerstone of the EOS governance system and now places the power back into the hands of the voters.

Anybody within the EOS network can put forward proposals for the referendum. 15% of the total tokens in circulation are needed to participate for the proposal to be accepted. There then needs to be more than a 10% difference between the yes and no votes within the proposal that has to be maintained for a total of 30 consecutive days within a 120-day period for the proposal to be met.

You can take a look at the current proposals put in place over at Bloks.io.

This will be crucial for the governance within the EOS network, as it has been previously riddled with allegations of centralization. This is particularly focused upon the default constitution, which seemed to allow the EOS Core Arbitration Forum (ECAF) to have overall power in making changes to the blockchain, such as banning accounts or rolling back transactions. There is already a proposal to reduce the power held by ECAF, which can be voted for today by EOS token holders.

Let us continue to take a look at price action for EOS/USD over the short term and continue to highlight any potential areas of support and resistance moving forward.

EOS has seen a small 4.83% price decline over the past 24 hours of trading, largely due to the recent BTC price drop, bringing the current trading price for EOS down to around $2.34. The cryptocurrency has seen a further 18% price decline over the past 7 trading days, but is still up by 24% over the past trading month.

EOS is now ranked in 5th position, as it currently holds a $2.10 billion market cap value. Stellar is not far behind in 6th position with a total of $2.03 billion, so we may expect some “flippenings” to occur during the week.

The 18-month-old project has seen a precipitous 55% price decline over the past 90 trading days, as it now trades at a value that is 89% lower than the all-time high price.

EOS/USD — 4HR CHART — SHORT TERM

https://www.tradingview.com/x/NoX2ABgw/

Analyzing the market from the 4HR perspective above, we can see that, since our last EOS/USD analysis, EOS has attempted to make another break above the $3.00 handle. However, the bulls were unable to overcome this area of resistance and have since rolled over from this level.

Price action for EOS/USD has now dropped since reaching the resistance level. It had recently found support around the short-term .5 Fibonacci Retracement level (drawn in green) priced at $2.35, but was unable to hold above this level during the recent trading period.

The market then went on to reach further support below at a short-term downside 1.272 Fibonacci Extension level (drawn in lilac) priced at $2.24 where price action had rebounded. Price action is now trading, once again, at resistance at the $2.35 handle.

TREND — BEARISH in the short term, NEUTRAL above $2.35.

The recent break below the $2.35 handle has rendered the EOS/USD market as bearish in the short term. However, if price action breaks back above the $2.35 handle, the market will return to a neutral trading condition.

For this market to be considered bullish in the short term, we would need to see price action break back above the $3.00 and challenge the $3.20 handle.

Where is the support below the market?

If the bearish pressure continues to cause EOS/USD to fall, we can expect immediate support toward the downside to be located at the short-term downside 1.272 Fibonacci Extension level (drawn in lilac) priced at $2.24.

Further support below this can then be located at the short term .618 Fibonacci Retracement level (drawn in green) priced at $2.16, closely followed by the downside 1.414 and 1.618 Fibonacci Extension levels (drawn in lilac) priced at $2.15 and $2.02, respectively.

If the bears continue even further below the $2.00 handle, we can expect more support to then be located at the short term .786 and .886 Fibonacci Retracement levels (drawn in green) priced at $1.90 and $1.74, respectively.

Where is the resistance above $2.35?

If the buyers can cause EOS/USD to break back above the $2.35 handle we can expect higher resistance to then be located at the short-term .382 FIbonacci Retracement level (drawn in green) priced at $2.54.

Further resistance toward the upside can then be expected at the previous short-term 1.272 and 1.618 Fibonacci Extension levels (drawn in blue) priced at $2.87 and $3.17. The resistance at $3.17 is further bolstered by the bearish .382 Fibonacci Retracement level (drawn in red) priced at $3.19, further adding to the resistance in this area.

If the bulls can continue higher, we can then expect further resistance above to be located at the medium-termed 1.272 Fibonacci Extension level (drawn in orange) priced at $3.68.

Conclusion

The new referendum system was much needed for the governance of EOS which was previously riddled with concerns of centralization through ECAF. Now that the EOS voters have more power, we can see if the new governance system will help remove these previous accusations of centralization for EOS.

(Excerpt) Read more Here | 2019-01-15 22:18:23
Image credit: source

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