EOS/USD nailed to $0.544, narrowing range looks scary

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  • EOS stays in a narrowing range in line with an overall lack of momentum in the cryptocurrency market.
  • The Spanish team has created a teleport between ETH and EOS blockchains.

EOS, the 5th largest coin with the market cap $4.9B and average daily trading volume $3664M is changing hands at $5.44, unmovable both on a daily basis and since the beginning of Monday. The coin has been sitting in a narrow range since the short-lived spike registered on October 15.

What’s going on

Spanish software developer shEOS has launched a protocol that allows moving tokens between Ethereum and EOS blockchains. This communication tool known as EOS21 serves as a bridge between the two networks. The process called “Teletransportation” implies that tokens are destroyed on one blockchain and immediately created on the other one. This procedure allows to avoid swelling an artificial number of tokens on two chains and retains their functionality after “teleportation”.

“In the EOS21 protocol, we are providing another option for ERC20 contracts that do not have a built-in pause/expiry function but who want to move their token to another chain. We are calling this action: teleportation. To teleport a token from one chain to another, it will exist on the destination chain, but no longer exist in a fungible form on the source chain,”  the team wrote in GitHub.

EOS technical picture

Looking technically, EOS/USD is supported by $5.40 congestion zone that has been limiting the decline since mid-October. If it is cleared the sell-off may continue towards the next support registered as low as $5.20, followed by psychological $5.00 (also, September 26 low).

On the upside, the recovery is capped by $5.46 (SMA200, 1-hour). This resistance is followed by the upper border of the recent channel at $5.60. A sustainable movement higher will take EOS/USD to the psychological $6.0.

EOS/USD, 1-hour chart

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