EOS, the native token of the open-source blockchain EOS Network, has seen its market capitalization soar to $1.74 billion, marking the highest level since November 2022. This milestone follows an impressive price increase of 165% in the past 30 days, catching many market observers off guard.
With EOS still 95% below its all-time high, investors are questioning whether this rally has room to run. This on-chain analysis explores the potential for further gains.
EOS is seeing growth in key areas
On November 4, the price of EOS was $0.42. However, as of the time of writing this, it has risen to $1.12, indicating that the altcoin has experienced an increase in demand over the past few weeks. Although the project has not seen any major developments driving the rally, it seems that the growing interest in relatively older coins has played a role in the price increase.
After the development, the market capitalization of EOS skyrocketed to $1.74 billion. Market capitalization is the product of price and circulating supply. Therefore, the increase in this metric is related to a price increase of 165%, especially since the project has recently not unlocked any tokens for its circulating supply of 1.53 billion.
Market capitalization of EOS. Source: Santiment
When OI increases, it means more liquidity has entered the derivatives market, indicating increased buying pressure for the cryptocurrency. Conversely, if OI decreases, it means traders are increasingly closing their positions.
From a price perspective, the increase in OI, along with the rising price of EOS, suggests that market value may continue to increase.
EOS Open Interest. Source: Santiment
EOS Price Prediction: Higher levels charted
On the daily EOS/USD chart, the Awesome Oscillator (AO) has increased. AO is a momentum indicator that measures the strength of recent market fluctuations compared to historical trends, helping traders identify potential changes in market momentum.
When the reading is positive, it means momentum is increasing. On the other hand, if the reading is negative, momentum is declining. In the case of EOS, the positive index also shows a green histogram bar, indicating that momentum is increasing.
Daily analysis of EOS. Source: TradingView
If this remains true, the price could rise to $1.21 and eventually $2 in the short term. On the other hand, if selling pressure increases, this may not happen. Instead, the market capitalization of EOS could decrease and the price could slide down to $0.93.