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EOS, the native token of the EOS Network blockchain, has skyrocketed to a market cap of $1.74 billion, its highest point since November 2022. This milestone reflects a remarkable 165% price surge in the past 30 days, surprising many investors and analysts.
Despite still trading 95% below its all-time high, EOS’s recent rally has raised questions about its potential for further gains. Here’s a closer look at the factors driving this resurgence.
What’s Fueling EOS’s Rally?
Price Explosion: EOS surged from $0.42 on November 4 to $1.12, indicating a significant increase in demand despite no major developments within the project.
Stable Supply: The rally is largely price-driven, as the circulating supply of 1.53 billion EOS tokens remains unchanged, avoiding dilution from token unlocks.
Derivatives Market Activity: A spike in open interest (OI) suggests growing liquidity and buying pressure in the EOS derivatives market, signaling confidence among traders.
Momentum Indicators Show Bullish Trends
Awesome Oscillator (AO): On the daily EOS/USD chart, the AO displays a positive reading with green histogram bars, indicating bullish momentum.
Key Price Targets:
If the bullish trend holds, EOS could climb to $1.21 and potentially test the $2 mark in the short term.
However, increased selling pressure could push the price down to $0.93, reversing recent gains.
Can EOS Sustain This Momentum?
EOS’s impressive performance underscores a renewed interest in older cryptocurrencies, but sustaining this rally will depend on maintaining bullish momentum in both the spot and derivatives markets. If current trends persist, EOS could break through additional resistance levels and achieve higher valuations.
As EOS surpasses key milestones, traders are closely monitoring its price action to determine whether this is the start of a long-term recovery or a temporary spike.
