Overly, EOS price analysis point to recoveries and EOS is technically stable following yesterday’s four percent gain. Not to be derailed by dApps vulnerabilities from NewDEX, EOS traders should look at on-chain developments following the recent EOS 1.3.0 release. The upgrade seeks to strength the network aside from making it easy for full nodes to sync.
Latest EOS News:
Unfortunately, there is no room for error in blockchain. Exchanges are prime examples of what happens when lurking hackers sniff out a weakness. It doesn’t matter the level of assumptions and just the other day, NewDEX, a trading platform issued a statement describing how they had been jacked off $58,000. This is after a single EOS account oo1122334455 successfully spammed the exchange with 1 billion fake EOS tokens. By the end of the ordeal, hackers had executed more than 11,500 trades buying BLACK, IQ, and ADD EOSIO tokens and simultaneously dumping them for real EOS. They later converted them for fiat at BitFinex leaving investors with losses.
It is quickly emerging that platform defining itself as a DEX was nothing but a centralized exchange. The deceit it appears, didn’t stop there. Unforgiving, NewDEX did operate without a smart contract meaning anyone could actually send tokens to and because there are no checks, trading would go on without friction. This left the “exchange”-single key coffers open to rogue elements that need only to “test” the waters before bombarding the exchange with fake orders.
At the end of the day, NewDEX couldn’t account for $58,000 and since it described itself as a DEX, it’s likely that there would be no recompense for investors.
EOS Technical Analysis:
A single trend line connecting Q2 and Aug 2018 lows shows that EOS is literally melting. Nonetheless, there are flickers of hope from a bullish perspective and all this considers pattern development in Aug. Clearly, declines by week ending Aug 12 didn’t move far thanks to buyers keen on supporting EOS prices above $4.
Instead what happened was a low-level consolidation concluding with that strong bull bar by week ending Sep 2. Afterwards, EOS prices have been ranging with clear resistance at $ and support at $4. Considering how prices are panning out, we suggest taking a neutral approach. This is with hindsight that $7 and $4 are important levels that can make or break EOS.
From our last EOS trade plans, Sep 17 losses are significant and could end up driving prices towards $4.5 and $4 support lines. While the past three days have been successful in recovering losses, buyers need to see strong moves above $5.5. This could trigger small lot longs aiming at $7—our immediate resistance line.
Conversely, failure of bulls to muster enough momentum above $5.5 could ignite a meltdown below $4. This would most likely drive EOS towards $1.5, our ultimate bear target by the end of the year.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.