After placing a fresh yearly low at $1.77 on December 7, 2018, the EOS market has rebounded significantly and continues to be the strongest performer out of the top 10 ranked cryptocurrency projects.
EOS has now jumped ahead of Stellar to claim the 4th position in the market cap rankings, sitting just behind Ethereum.
Like the entire industry, the EOS market has been under severe capitulation over the past few weeks.
Moreover, EOS suffered a setback when founder Dan Larimer came out and stated that he wanted to create an entirely new cryptocurrency. The markets did not react kindly to this as Larimer has a track record of jumping from project to project.
However, the recent Bitcoin surge has allowed EOS to also rise by a significant amount as it outpaces its top 10 rivals over the past 7 trading days.
The community now has their sights set on “flipping” with Ethereum although they are still a significant $9.5 billion away in market cap valuations.
Still, the EOS network is showing strong progress.
The top game dapp on the EOS network , EOS Knights, has a total of 3,900 average users daily. Compared to Ethereum’s top game, My Crypto Heroes, which has around 640 daily users, we can see that EOS dapp is much further ahead in terms of adoption.
This could be largely due to the fact that EOS can process a much higher number of transactions per second (TPS), currently close to a max of 4,000 TPS. Ethereum, on the other hand, can process between 20 – 25 TPS.
What’s more, the EOS gambling dapp EOSBet delivers around 1.3 million transactions per day through its platform which is more than the entire Ethereum network.
Let us continue to take a look at price action for EOS over the recent term and highlight any potential support and resistance zones moving forward.
Over the past 24-hour trading period, the EOS market has seen a significant 25.14% price surge, bringing the current trading price up to around $2.49, at the time of writing.
EOS/USD has now outpaced the entire top 20 cryptocurrencies over the past 7 trading days as price action boosts by over 29%.
Although the market is still trading at a 46% loss throughout the past 30 trading days, these recent price hikes should bring some confidence for EOS investors.
EOS is now ranked in 4th position as it presently retains at $2.23 billion market cap valuation. The 18-month old cryptocurrency is now trading at a price that is 88% lower than its all-time high value.
Since our previous EOS analysis, we can see that price action continued along its bearish trajectory to find support at our highlighted medium-term downside 1.414 Fibonacci Extension level (drawn in purple) priced at $1.64.
As the market reached this area, we can see that price action had rebounded and began to trade sideways for a few days.
The sideways trade movement was breached on December 7, 2018, when the EOS/USD market broke above the previous medium-term downside 1.272 Fibonacci Extension level (drawn in purple) priced at $2.06.
Price action then went on to surge until EOS/USD recently ran into resistance at the long-term bearish .236 Fibonacci Retracement level (drawn in red).
After price action broke above the $2.00 resistance level, the short-term trend shifted from neutral to bullish.
For the bullish trend to continue, we would need to see the market continue to travel higher above the $2.50 handle.
If the bulls manage to keep pressuring price action above $2.50 and the resistance at $2.56, we can expect immediate higher resistance to be located at the short-term 1.272 and 1.414 Fibonacci Extension levels (drawn in blue), priced at $2.87 and $2.99 respectively.
If the buyers can then continue to drive price action higher, more resistance can be located at the short-term 1.618 Fibonacci Extension level (drawn in blue) priced at $3.17.
This level of resistance is further bolstered by the long-term bearish .382 Fibonacci Retracement level (drawn in red) priced slightly higher at $3.19.
If the bears regroup and start to push price action lower once again, we can expect immediate support toward the downside to be located at the short-term .236 and .382 Fibonacci Retracement levels (drawn in orange), priced at $2.37 and $2.21 respectively.
Further support beneath this level can be located at the previous medium-term downside 1.272 Fibonacci Extension level (drawn in purple) priced at $2.06.
This is followed by the short-term .618 and .786 Fibonacci Retracement levels (drawn in orange), priced at $1.96 and $1.77 respectively.
The RSI on the 4-hour basis strongly favors the bulls as it trades near overbought conditions.
So long as it remains above the 50 handle during the market retrace, we can expect the bullish run to continue.
After placing the 2018 yearly low at $1.77, the EOS/USD market has rebounded with much aggression.
If the bulls can continue to pressure the market to climb above the $2.50 handle, the bullish run is likely to continue.
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