The central theses
- The key figures for EOS ‘social commitment have gone through the roof.
- In the meantime, the number of addresses with 100,000 to 10,000,000 EOS has risen rapidly.
- This unusual activity in the chain suggests that EOS is prepared for volatility, but may not be in the direction most people expect.
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Large investors appear to have amassed EOS in the past few months, suggesting that a large price move may be underway.
Unusual on-chain activity
Data from Santiment shows that EOS social activities have seen a series of spikes since mid-April, reaching levels not seen in more than a year.
During the first quarter of 2020, the number of mentions of EOS across more than 1,000 crypto social media channels averaged 50.
But on April 13th, social engagement readings skyrocketed to 416 points.
EOS Social Volume by Santiment
Around the same time, great players began to amass this altcoin heavily.
The number of addresses with 100,000 to 1,000,000 EOS, which can be described as “baby whales”, has doubled since mid-February.
Meanwhile, the number of “big whales” holding 1,000,000 to 10,000,000 EOS has risen by a whopping 22% over the same period.
Distribution of EOS holders to Santiment
This behavior suggests that EOS may be preparing to push the price further up before they find a reasonable level to sell their holdings to ignorant investors.
Although the optimal price level for it cannot be determined, a look at the technical data can help paint a better picture.
EOS could be ready for an uptrend
EOS is one of the few top cryptocurrencies by market capitalization that has not been able to fully recover from the losses incurred during the market slump in March.
This cryptocurrency is still down 18% since Black Thursday.
The slow move on the upside may not be encouraging to some investors, but others see it as an ideal entry point as the coin could continue to grow.
This is in line with the prediction of the TD sequential indicator on the EOS 1-day chart.
The TD setup recently sent a buy signal in the form of a red nine-candle. The bullish formation estimates an upswing of one to four candles or the beginning of a new upward countdown.
Since the current candle is a green candle, a subsequent green candle with two candles above the current candle’s closing price could serve as confirmation of the optimistic outlook.
EOS / USD on TradingView
Should that happen, a further increase in buying pressure behind EOS could cause it to rise towards the 61.8% or even the 50% Fibonacci retracement levels.
These resistance barriers are at $ 3 and $ 3.5, respectively.
EOS / USD on TradingView
Nonetheless, an increase in supply could invalidate the bullish view and push EOS back to the 78.6% Fibonacci retracement level.
Breaking below this support area could trigger a steeper decline, causing this cryptocurrency to bounce back to Black Thursday’s low of $ 1.4.
Go forward
The cryptocurrency market now seems overwhelmingly bullish as Bitcoin has made another halving in the history books.
Since then, BTC has risen more than 21%, suggesting that this may have been the catalyst for a new bull market. This could also suggest why so many investors are turning to altcoins like EOS.
However, as Bitcoin hits a multi-year resistance trendline, industry celebrities like Tone Vays claim that it could spark a steep correction affecting all assets in the crypto market.
If BTC goes down, it is likely that the rest of the market would follow suit. Considering such a bearish premise, the social volume of EOS shows that high chatter and price are inversely correlated. It could even be a justification for getting out of long positions in this altcoin.
In fact, whales may actually be preparing to give up their stocks sooner than expected.
EOS Social Volume by Santiment
Hence, the 78.6% Fibonacci retracement level which is at $ 2.3 plays an important role in the trend of EOS.
Staying above this support level will make the bullish outlook more believable, while falling below this level could signal the beginning of a steep decline.
Market participants have often spoken of the pump before the halving and the dump afterwards.
For this reason, it is very important to be careful with the price action of the market for the next few days so as not to get caught on the wrong side of the trend.
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