EOS entered a corrective phase on Apr. 30 that has seen its price retrace over 27%. The smart contracts token went from trading at a high of $3.1 to hit a low of $2.3. Despite the significant bearish impulse, data shows that large investors are accumulating EOS on every dip. If history repeats itself, this could be a sign that Ethereum’s rival is poised for a substantial upward movement. Whales Are Filling Their EOS Bags Santiment, a behavior analytics platform, noted in a recent report that something appears to be “brewing” with EOS. The firm affirmed that there is an inverse correlation between the “investors/baby whales” and “the big guys.” “While retail [investors] have been distributing EOS, whales have been accumulating,” said Santiment. Indeed, on-chain metrics reveal that the number of addresses with 100,000 to 1,000,000 EOS began rising on Feb. 9 of the present year. Since then, there has been a 20% growth in the number of whales behind this cryptocurrency and it continues trending up. EOS Holder Distribution. (Source: Santiment) Although the reasoning behind this behavior is unknown, EOS has shown robust development activity over the past couple of months. The development community behind this blockchain protocol continues making strides to expand the utility of its token despite the uncertainty in the global financial system. Development activity is not necessarily a good leading indicator of price, but it adds legitimacy to this projects that sits in an industry plagued by scams. EOS Development Activity. (Source: Santiment) As EOS solidifies its network and whales rush to get a piece of it, its price seems ready for liftoff. An Upswing on the Horizon The Tom Demark (TD) Sequential indicator is currently presenting a buy signal on EOS’ 1-day chart. The bullish formation developed in the form of a red nine candlestick. An increase in demand around the current price levels could help validate this signal. If this were to happen, the TD setup estimates that this altcoin may be bound for a one to four candlestick upswing or the beginning of a new upward countdown. TD Sequential Index Presents a Buy Signal for EOS. (Source: TradingView) Adding credence to the bullish outlook, the retracement that EOS has been going through since late April allowed it to hit the 50% Fibonacci retracement level. Based on Gann’s 50% retracement theory, this Fibonacci level presents a crucial opportunity to “buy the dip.” If EOS is able to bounce off this area with enough buying pressure behind it, it could rapidly rise and reach higher highs. EOS Is Being Held by the 50% Fib Level. (Source: TradingView) Nevertheless, market participants must be cautious about the dangers posed by breaking below the 50% Fibonacci retracement level. If this support barrier fails to hold the price of EOS, it could ignite a massive sell-off that pushes this cryptocurrency down to Black Thursday’s low of $1.42. Featured Image from Unsplash origin »

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