Why EOS investors should be concerned despite a favourable audit report

EOS recently released the most recent edition of its Q1/Q2 audit report, which includes a thorough review and analysis of Pomelo and related EOS Support projects.

The goal of the report was to provide EOS Respect and the larger EOS community with sufficient project details to assist users in making decisions during the pomelo seasons.

A brief about the audit report 

To further expand, the audit report highlights the collective efforts of EOS Support, as an organization, to facilitate the tracking of project progress and deliverables. In the report, the projects that EOS token owners reported during the Pomelo season received priority from the EOS Audit Community.

One of the projects that made it into the report was Eostat. The project was built to establish data reliability by introducing the concept of eostatic data. The term refers to information that is immutable and can be verified by any party.

Notable projects mentioned in the report

Apart from Eostat, several other projects were also mentioned in the report. For instance, Metahub, is a web plugin wallet designed for the blockchain and its side chains.

The project has a roadmap that has quite a few updates planned for the coming months. Another project was Defibox IBC. The project’s goal is to create an Antelope Inter-Blockchain Communication (IBC) application that works with EOS, WAX, TELOS, and UX.

EOS looked concerned 

While the report was drafted, EOS’ price action turned bearish as it registered a double-digit decline. According to CoinMarketCap, the token’s price was down by over 14% in the last seven days.

At press time, it was trading at $1.04 with a market capitalization of over $1.1 billion. The massive price decline caused a substantial surge in negative sentiment around EOS, which was evident from Santiment’s chart.

Source: Santiment

The storm is far from over

A look at the token’s daily chart gave more reasons for concern, as most of the market indicators were bearish. The MACD’s data revealed that the bears were way ahead of the bulls in the market.

EOS’s Chaikin Money Flow (CMF) registered a steep decline and was heading further below the neutral mark. Additionally, the token’s Relative Strength Index (RSI) was also hovering at 35.62, further increasing the chances of a continued price decline in the short term.

Source: TradingView

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