EOS Lacks Price Direction Ahead of Mainnet Launch

EOS' move from the ethereum blockchain to its own mainnet is just a couple of days away, yet its native cryptocurrency is looking indecisive on the price charts.

The cryptocurrency had rallied nearly 500 percent over the six-weeks to April 29 as the news of the mainnet launch revved up investor excitement.

Since May 24 EOS has been restricted to a narrow trading range of $10-$13, according to Bitfinex data.

The fizzling out of investor enthusiasm may be linked to the identification of security flaws in the EOS platform.

In response, the price of EOS fell from $12 to $10.70, but soon regained the lost ground alongside a $400 rally in bitcoin prices.

All that said, EOS is still up more than 200 percent from its March low of $3.87 and could shine against bitcoin in the near-term, the technical charts indicate.

The above chart shows that EOS is stuck inside a falling channel - a bearish pattern.

In such a case, EOS will likely find acceptance below the rising channel support and drop to $9.72.

On the higher side, only a convincing move above the rising trendline hurdle would revive the bullish outlook and open doors for $20. While the EOS/USD market looks indecisive, its bitcoin-denominated exchange rate looks all set for a big move higher.

The bull flag breakout seen on April 24 signals a resumption of the rally from the April 17 low of $0.0010 BTC and has opened the doors to 0.0029 BTC. Only a move back inside the flag would abort the bullish view.