EOS is reporting gains on a down day for the wider crypto markets and may soon rally to fresh all-time highs.
As of writing, the world’s fifth largest cryptocurrency by market valuation is changing hands at $14.61 – up 7.6 percent in the last 24 hours, according to CoinMarketCap.
Meanwhile, most other major coins are flashing red. For instance, bitcoin is reporting 1.2 percent drop, bitcoin cash and IOTA are down 12 percent each and names like ethereum (ETH), Ripple (XRP), cardano and stellar are down at least 8 percent each.
The good news for EOS does not end here: it’s also the biggest gainer among the top 10 cryptocurrencies by market cap on a week-on-week basis.
EOS’ 62 percent rally is backed by a notable 556 percent rise in daily trading volumes, indicating that strong hands are at play and the rally is here to stay.
It’s worth noting that EOS rallied sharply in the run-up to the April 15 eosDAC airdrop and, more importantly, remained well bid after the event – something of a surprise since cryptocurrencies usually rally ahead of their airdrops and then drop in value afterwards.
This resilience could be associated with the significant interest within the investor community about the platform’s mainnnet launch. Further, big names like Bitfinex, Huobi and Antpool are running as candidates to be EOS block producers (“supernodes” that will support the mainnet) and that may have boosted the token’s appeal.
Clearly, EOS is in the news for all the right reasons, so a rally to record highs cannot be ruled out. The technical chart (prices as per Bitfinex) also back up that possibility.
EOS daily chart
The high volume bull flag breakout (witnessed on April 11) signaled a bull market revival and opened the doors for a retest of the record high of $18.67. Accordingly, EOS rallied to $16.14 Tuesday – the highest level since Jan. 13 – before falling to $14.18 today.
The pullback could be extended further toward $11, as the daily relative strength index (RSI) shows overbought conditions.
That said, the outlook would still remain bullish, as suggested by the bull flag breakout and the ascending (bullish biased) 10-day moving average (MA).
- EOS will likely set fresh record highs above $18.67 (Jan. 13 high) in the near-term.
- Only a daily close (as per UTC) below the ascending 10-day MA, currently at $10.98, would abort the bullish view.
- A break below $7.80 (April 16 low) would confirm a bullish-to-bearish trend change.
Hot-air balloon image via Shutterstock
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