EOS rose from $0.42 to $1.12, with its market cap reaching $1.74 billion, its highest level since November 2022. This increase suggests increasing liquidity and bullish momentum for the altcoin.
Rise in Derivatives Trading Provides Potential Upside Momentum for EOS
The bullish Awesome Oscillator (AO) indicator points to a $2 target for EOS. EOS, the native token of the EOS Network, has increased in price by 165% in the last 30 days, reaching a significant milestone in terms of market cap of $1.74 billion. This increase is the highest level since November 2022 and has surprised many market analysts.
With EOS still 95% below its all-time high, investors are wondering how long this rally will last. On-chain analysis is exploring the potential for further gains for the altcoin.
EOS Shows Growth in Key Areas
On November 4, the price of EOS was $0.42 and has now risen to $1.12. This increase suggests that EOS has seen increasing demand and interest over the past few weeks. While the project has not experienced any major developments that have triggered this rise, the increasing interest in the old coins seems to have supported this rise.
EOS’s market cap has increased significantly, reaching $1.74 billion. This metric is calculated by multiplying the price by the circulating supply and is directly related to the recent 165% price increase. The market cap reached this level without any change in supply, despite no tokens being added to the project recently. As Open Interest (OI) increases, it means that more liquidity is entering the derivatives market and buying pressure on EOS is increasing. Conversely, when OI decreases, traders close their positions and selling pressure increases.
Price and Momentum: The Future of EOS
When we examine the price action of EOS, the price is expected to rise further with the increasing OI. On the daily EOS/USD chart, the Awesome Oscillator (AO) indicator readings are moving in a positive direction. AO is a tool that measures market momentum and shows traders possible changes. A positive reading indicates that the momentum is increasing and the buying pressure is strong. If this situation continues, the EOS price may rise to $1.21 and then to $2 in the short term. However, if the selling pressure increases, this scenario may not happen and the EOS price may fall to $0.93.
