Is EOS the Next Altcoin Due for a Run? - Price Analysis

  • Short term: possible bounce long to be had
  • Long term: good chance of a bottom being found on very long term scale

Many mid-cap altcoins have been burning up the charts recently (LINK, BAT for example), even as the big boys have been throttled by Bitcoin’s new downtrend. As perhaps the smallest large-cap altcoin, EOS has been riding the bottom of its BTC-paired chart for several months getting no love. But a bottom may have been found, and we go to the charts to review the evidence.

Starting on the 3-day EOS/BTC pairing, we first notice a lengthy development of bull divergences on the RSI. On such a large chart, this suggests that a bottom has been found -- and the only thing we lack here is a higher low on the swing lows. The EMAs have started to flatten, with the 8 EMA going sideways all through September until the present.

Where is the next low?EOS chart by TradingView

The histogram has spent a lot of time on the positive side, and is currently trending down. But as long as the RSI trendline holds, we can still make the case for a bottom having been found -- which is to say we might not even get a higher low on the next swing down.

Moving to the daily USD pairing, we see that EOS has likely not found a bottom to its short term market cycle. The histogram looks ready to roll over to the negative side, suggesting more downside; and thus, we can’t say for sure if the RSI will put in a divergence. We can also observe that volume (Coinbase) has not been impressive in general, with the only spike being during the big Bitcoin dump from $10k. There is not enough here to tell what is happening.

Again, looking for the lowEOS chart by TradingView

Finally, going to the 4-hour USDT pairing for the short term view, we see that EOS is currently finishing up its second significant dump of the week -- moving in step with Bitcoin -- into support from last month.

Price rolling up hereEOS chart by TradingView

On this timeframe, sell pressure seems to be fading, with a generally lower sell volume picture as the weekend looms. The histogram is arching back up, and if it does roll back up in the coming days we might see a long opportunity. The RSI looks like it’s putting in a bull divergence, although we must first confirm that the dip is complete.

Overall, EOS needs a lot of work. This is a good place to accumulate for value investors, but traders may need more medium-term strength to consider buying. On the extremely long timeframes, however, we might consider a bottom likely in, and the potential for a double bottom is clear. We'll have to see.

The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.

Featured Image Credit: Photo via Pixabay.com

Ethereum Was Behind 85% of Dapps' $12 Billion Volume in Q2 2020

The total transaction volumes of decentralized applications (dapps) in the cryptocurrency space hit $12 billion in the second quarter of this year, rising by $4.5 billion compared to the first quarter. Etheruem dapps accounted for 85% of the volume.

According to DappRadar’s Industry Review report, there are more than 70,000 active wallets across 13 different blockchains interacting with the cryptocurrency space. The top blockchains were EOS, TRON, and Ethereum, with the latter representing $10.2 billion of the $12 billion volume seen in Q2.

Ethereum’s large transaction volume was partly fuelled by Compound and the launch of the COMP token, which led to a “yield farming” trend, in which users were interacting with the protocol as much as possible to receive COMP tokens. Compound saw $1.2 billion move through it.

The yield farming trend saw Ethereum gas prices and transaction fees increase, which according to the report did not stop Ethereum dapps from thriving in general. It did, however, contribute to an 80% drop quarter-on-quarter for ETH gaming dapps, as high gas prices are “killing” their activities on the cryptocurrency’s network.

Despite Ethereum’s growth, EOS and TRON (TRX) dapps have also seen their activity increase in the second quarter of the year. According to the report in only three months, TRON’s transaction volumes on decentralized applications surged by over 17,200%.

The rise was largely attributed to Oikos.cash, a TRON-based version of the Compound lending protocol.  While TRON’s DeFi growth has been notably, DappRadar pointed out that most dapps on its blockchain are still in the “gambling” and “high risk” categories.

The EOS blockchain has still been enduring the effects of the EIDOS token airdrop, which put the network into “congestion mode.” The airdrop clogged the network and as a result, from 2019 to 2020 wallet activity on decentralized applications dropped 53%.

So far this year, $1.9 billion have been transacted on decentralized applications using the EOS blockchain, thanks to two dapps: Crypto Dynasty and Upland. DappRadar’s report also shows that two other blockchains are growing thanks to gambling dapps: WAX and ThunderCore.

Featured image via Pixabay.