EOS has surged 15% in the past 24 hours, making it one of the best-performing cryptocurrencies in the top 20 aside from Chainlink. The cryptocurrency, with this latest rally, is reaching multi-week highs.
While the ongoing move is still nascent, analysts think that EOS has fuel to surge even higher in the weeks ahead. The cryptocurrency can be spurred by both fundamentals and technicals, they suggest.
Related Reading: Crypto Tidbits: MicroStrategy’s $250m Bitcoin Purchase, Ethereum DeFi Boom, BitMEX KYC
EOS Is Preparing to Surge Higher, Technicals Show
EOS’s move has just begun, but analysts are already expecting the asset to achieve further upside.
Michael Van De Poppe, a trader at the Amsterdam Stock Exchange that follows cryptocurrency, shared the chart below on August 15th. It shows that EOS is following the path he predicted a number of days ago. His prediction suggests that EOS still has another 10% or so to rally before a retracement.
“And that’s the mover. Nice! Already up 21% and finally following $XRP. Expecting some consolidation overall, but this one is starting to heat up.”
Chart of EOS' price action over the past few months with analysis by trader Michael Van De Poppe (Cryptomichnl on Twitter). Chart from TradingVIew.com
The expectations of strength in EOS’ price action have been further echoed by Nik Patel, the author of the “Altcoin Trader’s Handbook” and a popular cryptocurrency analyst.
He noted that EOS is likely on the verge of outpacing the growth of Ethereum, referencing a chart relating the price action of the two smart contract giants.
Related Reading: Crypto Tidbits: Goldman Stablecoin, Dave Portnoy Wants Bitcoin, DeFi Boom
Boosted by DeFi Narrative
EOS may be boosted by the fundamental narrative that the blockchain is pushing towards decentralized finance.
Responding to the ongoing DeFi craze that has largely culminated in the Ethereum ecosystem, Brendan Blumer, co-founder of Block.one (EOS founder), said that the blockchain will “unleash DeFi.”
Blumer added in a later comment that the network has “the performance, liquidity, and developer community to support #DeFi applications that aren’t possible anywhere else.”
— Brendan Blumer (@BrendanBlumer) August 14, 2020
Considering the effect DeFi has had on ETH, it would not be surprising to see EOS outperform many other digital assets if it sees a similar DeFi boom.
If developers can deliver on Blumer’s intent to “unleash DeFi,” though, remains to be seen. But as made abundantly clear by the high transaction fees faced by Ethereum users over recent weeks, solutions are needed in the near future or else smaller market participants will be entirely priced out.
Featured Image from Shutterstock Price tags: eosusd, eosbtc Charts from TradingView.com EOS Price Just Surged 15%—and More Upside Is Likely on Its Way