EOS price analysis: Declines Unstoppable-Daniel Larimer courting other cryptos

EOS is still heading south even when other altcoins are showing signs of recovery. The crypto has extended declines that started on Monday this week. EOS is down more than 9% on the day on Wednesday. The slide started during the Asian hours has progressed into the European trading house. EOS/USD is changing at $2.261 while testing the nest support target at $2.2.

The EOS community was shocked by a message sent by Daniel Larimer, the developer who created Bitshares, a project that turned into the current EOS. In the message, Larimer told his followers that he is not abandoning EOS and Block.one, but he has discovered a project that he believes that it is a potential crypto token. He recently clarified his move saying:

“I will say it again; I am not leaving EOS. In the process of working on EOS security and scalability, I stumbled upon a new set of tradeoffs for a potential crypto token and I have merely been exploring whether there is the market for those tradeoffs. EOS is the future of blockchain and each day our team at block.one is making it faster, more secure, more scalable, and more flexible.”

Although the developer has clarified his intentions, the community is jilted. Larimer has a tendency of leaving projects midway to explore other exciting ventures. The community is worried that this is still the case.

Meanwhile, EOS has broken out of a falling wedge pattern formed yesterday. The fall was unexpected since a falling wedge pattern is usually a bullish pattern. However, the general negative trend in the market overwhelmed the bulls who are currently struggling to keep the price above $2.2. The RSI is back in the oversold region since the declines on Monday and Tuesday morning (GMT).

The bearish trend is confirmed by the fast stochastic oscillator which is buried in the red region. EOS has trimmed most of the gains this year and is now exploring new yearly lows. The asset value continues to deteriorate and the situation may continue towards the end of the month.  Experts say that after the cryptos find the bottom, they will begin the recovery journey in the first quarter of 2019.

EOS/USD 15-minute chart