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EOS Price Up 42%, Riding on Technical and Fundamental Support

A new voting system, market momentum and a bullish crossover.

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EOS’ Price Is Up 42% Since Mid-August

EOS, the 5th largest cryptocurrency by market capitalization (currently over $5.8 billion according to CoinMarketCap.com), has been trading in the green for a good 15-20 days now. It’s up 42% since mid-August (from $4.64 on August 15th to $6.60 on September 2nd). Now, a combination of fundamental and technical factors are supporting the current trend in its price.

Fundamentally Stronger

Fundamental factors supporting the current surge in EOS price include:

  • The August 27th announcement made by the company that EOS is building a voting system to help with decision making with regard to the allocation the $35 million in funds locked in a savings account (eosio.savings) on its protocol. The account is expected be worth close to $192 million at the end of EOS’ first 12 months as a live blockchain.
  • An August 30th dated announcement by Canada-based Netcoins Holdings Inc. (GARLF) stated that it has listed EOS on its platform, available for immediate purchase. The EOS addition completes Netcoin’s listing of the top 7 market cap coins.

Technically Higher

From a technical perspective, both moving averages and RSI provide the necessary boost to the current trend. September 1st saw EOS price break its 50-day simple moving average (SMA-50). Moreover, the SMA 14 has also been directionally treading upwards since the last week of August. Continuation of the SMA-14 trend could lead to the formation of a bullish crossover, confirming our expected stance from the crypto asset.

The relative strength index (RSI) is at over 58 index points, reflecting strength in movement. So, the current trend in EOS is positive and well supported by a higher RSI number. An RSI level higher than the neutral 50 reflects good strength in market momentum driving the current price direction.

However, given the market for cryptocurrency is still volatile, it cannot be confirmed with certainty whether the EOS price will continue to make higher swing highs and higher swing lows.

Image Credit: Deposit Photos

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