FxWirePro: EOS plunges more than 20 pct as block producers crash after RAM fault, momentum indicates bullish divergence, good to buy near trend line support

EOS.IO is a blockchain technology like Ethereum for deployment of decentralized applications and a decentralized autonomous corporation.

`It is similar to decentralised operating system where developers can bulid applications on EOS. The consensus mechanism used by EOS is Delegated Proof of Stake (DPOS). DPoS a slight variation of the Proof of Stake where users vote to select witnesses and the top tier of witnesses earn their right to validate.

EOS is slightly better than Ethereum in number of transactions per second. It is possible to do 1000-6000 transaction per second compared to 15 tps in current Ethereum implementations.

EOS users need to own or rent some of the coin to use the network so there will be no transaction fees.

News Update and technical:

EOS token price dropped more than $2 in the past two days as several block producers of the recently launched EOS temporarily crashed after running into RAM related limitations, according to EOS New York.

EOS block producers can support up to 64 GB of RAM capacity collectively and it has blamed block producers failed to configure nodes correctly.

The pair has declined sharply after a minor jump till $9.44. It is trading well below 200- day MA at $10.15.

On the higher side , near term resistance is around $9.45 and any break above targets $10.15/$11.55. The major support is around $6 (trend line support) and any break below targets $5/$3.67.

It is good to buy on dips around $6.95-$7 with SL around $6 for the TP of $11.55.