Tanya Abrosimova
Independent Analyst
- EOS drops below $7.00 amid growing bearish pressure.
- PeckShield revealed EOS secret key vulnerability.
EOS is one of the worst performing virtual currencies from top-10, down 9% since this time yesterday. The coin touched $6.74 and recovered to $6.84 by press time. EOS market cap slumped to $6.1B from $6.9 on Tuesday, while average daily trading volumes settled at $690M.
EOS project is living through a hard time as numerous delays of mainnet launch, frozen accounts, and galloping RAM costs discourage community and increase the population of EOS critics. To add insult to the injury, blockchain security company PeckShield analyzed the security of EOS accounts and revealed a significant vulnerability: secret key generation tool allows to use a weak mnemonic combination, which means that the key is not secure and vulnerable to so-called rainbow attacks.
“The essence of the risk is caused by improper use of third-party EOS key-pair generation tools, including but not limited to EOSTEA. With user-provided seeds, these tools greatly facilitate users to generate their EOS key pairs,” the company wrote.
EOS technical picture
Looking technically, the sustainable movement below $7.00 support is an ominous sign. As the coin touched a low at $6.74, the focus shifted to $6.00-$5.9 support area. Once it is cleared, the downside may be extended towards $5.1. On the upside, the ultimate resistance is seen at $10.19 (200-DMA), but we have to clear $8.00 and $9.00 before we get there, which looks unlikely at the current stage.
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