Although the broader crypto market has done essentially well over the past 24 hours, some altcoins are still trying to withstand pressure to perform better. The 30th largest cryptocurrency in the market, EOS, was one of them.
After appreciating just 0.1% in 24 hours, this altcoin was trading at $ 5.49 at the time of writing.
Reaction from dealers
Over the ten-day period from August 8th to 18th, EOS’s funding rate made unusual highs on all major exchanges, including Bybt, Gate and Binance. A high funding rate usually indicates that traders are optimistic about the foreseeable prospects of a particular coin / token. It is noteworthy that on two occasions – August 13th and 17th – Gate and ByBt managed to rise to 0.129% and 0.132% respectively.
The value of the altcoin fluctuated between $ 4.2 and $ 5.9 over the same period. When the price of EOS did not break above the psychological $ 6 benchmark, the traders’ narrative gradually began to change and the funding rate began its southern trend.
History of EOS funding rates || Source: ByBt
The data from Santiment underscores the increase in EOS spot volume during the same ten-day period. By and large, the volume spun around the $ 2 billion mark. However, the same thing was back in the $ 1 billion range at the time of writing.
Its circulating market cap was also just $ 4.3 billion on Aug. 8. However, it managed to grow as high as $ 5.4 billion on August 16. Ultimately, this seemed to indicate that there were more EOS tokens in circulation among market participants at the time.
When the pressure resurfaced on the sell side, it was back down to the $ 5.1 level at the time of writing.
Is there anything to look forward to?
Talks about the EOS IPO picked up speed in particular towards the end of June. Within a few days it became known that “Bullish” [the exchange] would use the SPAC route to go public on the NYSE by the end of the year. Interestingly, the private alpha version of the exchange was released on July 27th.
Well, a few days ago, on August 19th, the EOSIO market data oracle was also launched. This oracle developed by AlgoTrader would give the EOS Public Blockchain free access to live market data. In particular, the project is open source and can also be used to develop new products such as synthetic instruments, derivatives and stablecoins.
In addition, EOS ‘development activities are also picking up speed. Santiment’s data confirmed the same fact. The value of this key figure fluctuated between 19 and 20 towards the end of July. Within three weeks it had almost doubled and was 41 at the time of going to press.
What’s next?
In the past few days, the altcoin has been trading very close to its support level. In fact, at the time of writing, EOS was also trading above its 200-day SMA. However, it faces some immediate resistance at $ 5.6 and $ 5.9. Only if it is possible to break this in the next trading sessions would it make sense for traders to expect a value of EOS up to USD 6.5.
Otherwise, EOS would drop back to its $ 4.9-5.1 level.
Source: TradingView
Looking at the sentiment of the leverage traders, spot volume, circulating supply, and price chart trend, it can be said that the next few days would be quite a challenge for the alternative. However, given the pace of development and the prospects for exchanges, the long-term future seems to be in pretty good shape.
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