Key Takeaways
Since surging to $0.59 on Sunday, March 30, EOS has extended its gains for three consecutive days. As a result, its seven-day performance has hit a 20% increase.
This rally has positioned EOS as one of the top-performing cryptocurrencies in the top 100, with only Berachain (BERA) posting a stronger performance. While analysis of some of the top altcoins reveals a reversal, it might not be the same for this cryptocurrency.
In this analysis, CCN explains why the token price could continue to increase.
EOS Hits Multi-Day Highs
For months, EOS price struggled to break out above the descending channel on the daily chart. Due to that, the altcoin could not break above the $1 mark.
However, as of this writing, EOS has breached the upper trendline of the bearish pattern. Following this breakout, the Relative Strength Index (RSI) reading has risen to 69.12.
The rise in the RSI reading signifies bullish momentum. If sustained, this could elevate the cryptocurrency’s price much higher than $0.68.
Furthermore, what turned out to be an impressive performance might not have happened without the help of EOS bulls. On the daily chart, CCN noticed that the Bull Bear Power (BBP) reading has increased.
As seen below, this has been the case since March 18, indicating that bears have found it challenging to keep bulls out of the picture. Should this trend continue, then EOS price might keep swinging upwards.
Will Market Hype Translate to Buying Pressure?
From an on-chain standpoint, Santiment data shows that the social dominance around EOS has jumped. Social Dominance measures the percentage of discussions referencing a specific asset, indicating its relative prominence in the market.
An increase in social dominance indicates rising market attention. If sustained, this could trigger rising demand. On the flip side, a decrease in the metric indicates otherwise.
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As of this writing, EOS’s social dominance has risen to $0.31$. Should the reading continue to climb, the EOS price might also do the same.
Crypto analyst World of Charts also seems to agree with the thesis. In his post on X, the analyst mentioned to his 43,200 followers that the EOS price might rally toward the $1 mark.
“Seems like EOS is getting ready for another strong bullish rally. Testing multiple trendlines, a successful breakout could send it towards 1$.” The analyst stated .
EOS Price to Trade Higher
In the short term, analysis of the daily chart reveals that EOS market value might continue to rise. As illustrated on the chart below, the altcoin has risen above the 20-period Exponential Moving Average (EMA).
Typically, a rise above the EMA indicates a bullish trend, while a decline below the key support signifies a bearish outlook.
Should this trend remain the same, EOS price might rise to $0.83 at the 0.618 Fibonacci ratio. If buying pressure intensifies, the token might retest $1.
Alternatively, if EOS drops below the 20 EMA, the price could drop below the upper trendline of the descending channel, sinking below $0.55.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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