The EOS price strong recovery rally has hit a major barrier. The coin is trading at $4.95, which is about 17% below the highest point during the weekend. The token is now valued at more than $4.8 billion and is the 31st biggest cryptocurrency in the world.
What is EOS?
EOS is the native token for EOSIO, which is a blockchain project that helps developers build agile decentralized applications. The project was built by Block.one, which is known for running the biggest Initial Coin Offering (ICO) in the world. It raised about $4 billion but it was forced to pay $25 million to US regulators.
Block.one is also controversially building Bullish, which will be a cryptocurrency exchange. This is a controversial move considering that the industry is already mature with both centralized companies like Coinbase and decentralized platforms like Uniswap.
EOS faces a tough time going forward from a fundamental perspective. For one, many enterprise developers are turning to alternative platforms like Hadera Hashgraph and VeChain. Other types of developers are already building on Ethereum, Solana, and Polkadot. While Ethereum has its challenges, its developers are already upgrading the network to become faster. This is why only a few DeFi and other DAPP projects are currently built on EOS.
EOS price prediction
The EOS price staged an impressive recovery in the past few days. It rallied to a monthly high of $5.9416, which was about 90% above the lowest level in July. In the past few days, however, the coin has declined by more than 17% from its highest point this month.
It is also approaching the neckline of the double-top pattern and moved below the 25-day and 50-day moving averages. Therefore, the coin will likely move lower as bears target the 50% retracement level at $4.5487. On the flip side, a move above the 23.6% retracement level at $5.28 will invalidate this view.