EOS, Bitcoin Cash Drop Biggest as Top Cryptocurrencies Correct Lower
EOS continues to face more rapid capitulation than its peer blockchain projects after falling another 11% in a day.
The EOS/USD rate on Tuesday established an intraday low at 2.41-fiat, down 28.27% from its weekly high at 3.36-fiat. Meanwhile, the maximum drop noted in the EOS market capitalization this week touched $861 million, according to the data available at CoinMarketCap.com.
The downside action in the EOS market stems from uncertainties related to the blockchain that powers the token. Investors and traders are worried about EOS longevity as a “decentralized” blockchain project, with new reports proving how highly centralized the project has become lately. For a project that raised $4 billion in an initial coin offering round, the EOS as an asset must appear overvalued to many owing to its latest hype-bust.
EOS was among the investors’ favorites mainly because it was the only coin to have surged better than the rest of the crypto market in April. The coin jumped circa 400%, rising from $4 to $20, mainly because its year-long ICO at the time was not completed. In reality, the EOS rate could have much been much lower than $20.
Bitcoin Cash Strongly Bearish
At the time of this writing, Bitcoin Cash (BCH) has also dropped by 8% on a 24-hour timeline, now trading at $154.38 with a total market capitalization of $2.70 billion.
The BCH/USD this week established a high at 196.80-fiat after its hash war with the fellow Bitcoin SV group came to a conclusion. The fundamental nevertheless couldn’t fix the amount of sentimental and financial damage incurred by investors during the said hash war. The upside corrections were mostly traders executing their short positions, forming a bearish flag to indicate a continuance of its downward trend.
The hash rate of the bitcoin cash network has also dropped after the hard fork. It reflects the falling security standards of the network which might have led investors to short their BCH position in the near or medium term.
Elsewhere in Crypto Market
Bitcoin, the top digital currency, had a less severe 24-hour period at the market than EOS and Bitcoin Cash. The coin noted a marginal drop of 0.55% to $4000. Ethereum and XRP also dropped 1.84% and 1.34%, respectively, holding their support levels intact like bitcoin to promise a potential bounce-back scenario.
The ETH/USD rate at press time is 111.61-fiat. And the XRP/USD is trading 0.3564-fiat.
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