The EOS price rose sharply on Wednesday as the recovery rally that started a few days ago continued. The coin is trading at $3.70, which is about 61% above the lowest level on Saturday. As a result, its total market cap has risen to about $3.4 billion, making it the 45th biggest cryptocurrency in the world.
EOS rebounds
EOS has had a mixed year so far. Initially, the coin’s price surged to an all-time high of $14.85 in May. This jump happened in line with the price action of other cryptocurrencies. At the time, Bitcoin and most altcoins jumped to an all-time high.
EOS, like all other cryptocurrencies, then tumbled. It initially declined by about 80% and reached a low of $3.17 in July. Since then, it has attempted to rebound but it failed to move above the key resistance level at $6.45. During the past weekend, it crashed to the lowest level in more than a year.
There are two reasons why the EOS price has struggled even as other cryptocurrencies like Bitcoin and Ethereum have soared.
First, many investors have ignored EOS because of its heritage. As you probably know, EOS is managed by the EOS Foundation. This is an independent foundation that was established by Block.one, a relatively shady company.
Block is known well for running the biggest Initial Coin Offering (ICO) in 2017. Since then, the company has been forced to pay fines by the Securities and Exchange Commission (SEC). Therefore, many investors have deliberately avoided EOS because of its association with the company.
Second, as an Ethereum-killer, EOS has been overtaken by other relatively younger projects. For example, some projects like Solana, Avalanche, and Polygon have become more popular than EOS. This likely explains why the EOS Foundation CEO called the project a failure a few weeks ago.
EOS price prediction
The daily chart shows that the EOS price has been moving sideways in the past few months. It has remained between the support and resistance levels at $3.10 and $6.38. The price is now at an important level that was the lowest level on September 29th. It is slightly below the 25-day and 50-day moving averages.
Therefore, for now, there is a likelihood that EOS will attempt to rise above the key resistance at $4. However, in the long-term, I suspect that the coin will continue underperforming bigger coins.
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