EOS In New Territory After Securing Important Level — Price Analysis

Colin Muller
  • LTF (Low timeframe) trend: Pointing down
  • MTF trend: We may well see a downside reversal here
  • HTF trend: Likely uptrend brewing

As one of the altcoin majors, EOS is keeping up with the rest of the burgeoning altcoin space with some healthy gains. Against Bitcoin, it has taken a significant resistance level, and is gearing up to break through another one on its dollar pairing — perhaps set it up nicely for the rest of the year.

Starting on the weekly EOS/Bitcoin chart, we first notice that the 2018 low mark (at ₿0.00004721) has been retaken, after first losing the level in July 2019. This entire bottom area of previous resistance, derived from deep wicking in 2018, is steadily being flipped to support. The 55 EMA is clearly being respected here, and may be a significant level in the local market.

Chewing through, but perhaps overheatedEOS chart by TradingView

We see seven straight weeks of gains on this chart, although in percentage terms it has not been inordinate given the state of the market (about 50%). It seems wise for us to anticipate a week or two of red; however, given the market, it is not out of the question that EOS could simply rocket through the rest of this support.

On the daily EOS/Bitcoin chart, we see that the previous local top around ₿0.000045 would serve as a useful retest point of both the local market, and the approximate level of the important 2018 price level discussed above.

At least to 4500 satsEOS chart by TradingView

We see volume building up nicely here, and no bear divergence detected on the RSI. The histogram also looks strong, spending most of its time on the positive side, although we may see a bit of bearish contract in the coming days – this would also be in keeping with the rest of the market’s direction.

maybe not todayEOS chart by TradingView

Finally, on the EOS/Dollar weekly, we see EOS pressuring another significant resistance/inflection level at $5.50, on top of a clear MTF uptrend. The RSI is getting closed to overbought on this timeframe, and we could see the MTF trend change to down after a rejection at this level.

Overall, EOS looks like it will be among 2020’s strong performers. It is at important historical levels on both its HTF charts; and even if it is rejected from these levels in the medium term, we are likely to see some consolidation and base-building for the rest of the year.

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-Based DeFi Project Reportedly Grew Nearly 780% Last Year

Decentralized finance (DeFi) projects based on the Ethereum blockchain have grown by 778% when compared to the first quarter of 2019, driving growth in the decentralized application space.

According to a report published by DappReview, compared to the first quarter of 2019 the total value of transactions made on decentralized applications grew by 8.2.2% to $7.9 billion, across a total of 13 different blockchains.

The top three blockchains – Ethereum, TRON, and EOS - contributed a total of 99.1% of the volume. The report notes that both TRON and EOS, however, lost users and transaction volume year-over-year, while Ethereum kept on growing.

This growth saw decentralized finance projects increase 778% compared to the first quarter of last year. Notably, these grew even though the total active addresses interacting with decentralized applications dropped by 22.1%.

The report notes that on the Ethereum blockchain, the total transaction volume on decentralized applications during the first quarter of the year was of $5.64 billion, an increased of 652% compared to last year. The report reads:

The main growth was driven by DeFi projects which have become the growth gist of Ethereum since 2019, with the largest transaction volume. It is worth noting that most of the volume of DeFi projects are in ERC-20 tokens (such as WETH, DAI, USDC, etc.), rather than the native token Ether.

ERC-20 tokens, it adds, made up 84% of the total transaction volume. Per DappReview the Ethereum dApp ecosystem “remains diverse and the performance was very steady compared to the other blockchains.”

The report further notes that casino decentralized applications, which were popular last year, saw their volume drop 64.6% year-over-year, while still remaining among the top three sectors when it comes to active addresses.

As CryptoGlobe reported, earlier this year the total value locked in decentralized finance apps hit a $1 billion all-time high, before dropping over one project being exploited through so-called flash loans, and over the value of cryptocurrencies going down.

Cryptocurrency wallets have also been making it easier for users to earn interest on DeFi platform, with Coinbase wallet integrating support for these project late last month.

Featured image via Pixabay.