EOS price analysis: EOS/USD drifts lower amid RAM cost issues

EOS corrected from overbought territory.
RAM prices are too high, making the whole network too expensive.

Tanya Abrosimova Independent Analyst

EOS/USD lost 4.5% on a daily basis amid mild bearish pressure on the cryptocurrency markers. EOS is the 5th biggest coin with market value $7.8B and average daily trading volume $842M. The figure reduced significantly from Tuesday's $1.2B as market players lament high costs of EOS network. EOS is changing hands at $8.7.

EOS never-ending problems

It seems that dreams for free or next to free EOS transactions will never come true as network block producers hoarded the most of RAM resources, engineering a sharp cost increase. RAM prices grew four times in just a single day and peaked at 0.088EOS per Kb, which means that a user needs to pay about $30 to create a new EOS account.

EOS technical picture

Looking technically, EOS/USD failed to stay above $9.00, which is now plays a role of resistance level. But the fact taht the price is still above $8.00 may be interpreted as a positive signal. EOS corrected from overbought condition, but the selling pressure may take it further down to $8.4 (100-SMA, 1-hour chart) Once it is broken, the downside may be extended towards $8.00. On the upside, keep an eye on $10.00 and $10.23 (200-DMA).

EOS/USD, the 1-hour chart

Author

Tanya Abrosimova

Independent Analyst

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