The market capitalization of EOS, the native token of the open-source blockchain EOS network, recently surged to $1.74 billion, reaching its highest level since November 2022. The price of EOS has risen by as much as 165% in the past 30 days, catching many market observers off guard.
Despite this, EOS is still 95% below its all-time high, so many investors are skeptical about whether this wave of gains has room to continue. In this regard, on-chain analysis explores the potential for EOS to rise further.
EOS sees growth in key areas
On November 4, the price of EOS was $0.42, and as of this writing, the price has risen to $1.12. This shows that the demand for EOS has increased significantly in the past few weeks.
Although the project has not made any significant progress to drive the price up, market interest in this relatively older token seems to be growing, and this increase in demand has contributed to the rise in price to some extent.
Accompanied by the price increase, the market capitalization of EOS has also climbed to $1.74 billion. Market capitalization is derived from the multiplication of price and circulating supply, thus, the increase in market capitalization directly reflects the magnitude of the rise in EOS price. Moreover, it is worth noting that despite the significant rise in EOS's price, the project has not unlocked any new tokens for its 1.53 billion circulating supply recently.
When Open Interest (OI) increases, it indicates that liquidity in the derivatives market is increasing, which usually means that the demand for purchasing cryptocurrencies is rising. Conversely, if OI decreases, it suggests that many traders are closing positions, and market activity is declining.
From a price perspective, the significant increase in Open Interest (OI), combined with the rise in EOS price, may indicate that the market value will continue to increase.
EOS Price Prediction: Expected to Continue Rising
From the daily EOS/USD chart, the readings of the Awesome Oscillator (AO) have shown an increase. AO is a momentum indicator used to measure the strength of the current market trend compared to historical trends, helping traders identify potential changes in market direction.
When the AO reading is positive, it indicates bullish market momentum, and the trend may move further upward; conversely, if the reading is negative, it indicates weak market momentum. In the case of EOS, a positive value (shown as green histogram bars) suggests bullish market momentum, indicating that prices may continue to rise.
If this trend continues, the price of EOS may rise to $1.21 in the short term, with the potential to eventually break through $2. However, if selling pressure increases, the situation may change. In that case, the market capitalization of EOS could be affected, and the price may retreat to $0.93.