EOS price has slowly continued its bullish rally as the ongoing crypto bonanza gained steam. The coin surged to a high of $0.8916, its highest point since June 10th. It has risen by more than 67% from its lowest point this year, giving it a market cap of over $995 million.
Crypto bonanza continuesEOS price has been in a strong uptrend in the past few weeks, helped by the ongoing crypto bonanza. The fear and greed index has moved to the extreme greed zone of 75, signaling that there are more buyers in the market.
EOS is reacting to numerous tailwinds in the crypto industry. From a macro level, there are rising chances that central banks will do an about-turn in the coming months since inflation is slowly falling.
In Europe, inflation has plunged to 2.4%, nearing the ECB target of 2.0%. Similarly, in the UK and the US, the headline inflation has dropped to 3.4% and 3.1%. There are signs that this trend will continue in the coming months.
Therefore, the base case among investors is that these central banks will start cutting rates in 2024. Most analysts see rate cuts of over 75 basis points among these banks as they balance low inflation and slow economic growth.
Fundamentally, EOS is not doing well as its ecosystem growth remains under pressure. According to DeFi Llama, the network has a total value locked (TVL) of over $100 million, down from the YTD high of $106 million.
A look at the EOS ecosystem shows that these assets are dominated by EOS REX, a lending protocol with $49 million in assets. PayCash, DefiBox, and WhaleEx have TVLs of over $23 million, $22.2 million, and $3.1 million.
The challenge for EOS is that competition in the industry has stiffened in the past few months. Some of the biggest contenders that are beating it are Base, Sui, and PulseChain.
EOS price forecast
The daily chart shows that the EOS token price made a strong comeback in the past few months. It has now moved above the 38.2% Fibonacci Retracement level. It has also risen above the 50-day and 100-day moving averages, which have made a bullish crossover pattern.
EOS price is also invalidating the double-top pattern at $0.8778. In most cases, the double-top pattern is one of the most bearish signs in the market. Therefore, my base case is where the coin rises and reached the key resistance at $1.02, which is the 61.8% retracement point. This price is about 17.68% above the current level.
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