EOS is still 10x from a year ago. A lot of people are hard pressed because they were sold the EOS dream in May and are now turning into full fledged holders.
Furthermore, the last two EOSUSD pumps were fueled by margin traders (see EOSUSDLONGS chart). I would be extremely cautious because last year could realy have been an artificial pump leading to the main launch. There are 8 000 000 EOS longs that are currently at break even/underwater. We don't know there liquidation point but I suspect Longs will have to go down before we see new bull run for EOS.
Now the longs are not increasing, but we see a sharp increase in shorts at an important crossroad. I don't see any indications of a bottom. Volume is not really increasing and the only thing holding this is speculators because everyone think EOS at 5$ is a steal. My feeling is that big players with deep pockets will bleed EOS further down and the market won't have enough capital to hold em.
I expect a small bounce because the market is getting back on track. But this will be short lived.
My 2 cents.
Furthermore, the last two EOSUSD pumps were fueled by margin traders (see EOSUSDLONGS chart). I would be extremely cautious because last year could realy have been an artificial pump leading to the main launch. There are 8 000 000 EOS longs that are currently at break even/underwater. We don't know there liquidation point but I suspect Longs will have to go down before we see new bull run for EOS.
Now the longs are not increasing, but we see a sharp increase in shorts at an important crossroad. I don't see any indications of a bottom. Volume is not really increasing and the only thing holding this is speculators because everyone think EOS at 5$ is a steal. My feeling is that big players with deep pockets will bleed EOS further down and the market won't have enough capital to hold em.
I expect a small bounce because the market is getting back on track. But this will be short lived.
My 2 cents.