EOS price has crawled back in the past few days as altcoins recover slightly. The coin has risen to a high of $1.05, which is about 28% above the lowest level this month. Its market cap stands at $1 billion, making it the 53rd biggest coin in the world. So, is this fallen angel a good buy?
EOS is a blockchain project that seeks to become a viable alternative to Ethereum and other layer one networks. It is governed by EOS Foundation, an organization started by Block.one. Block is well-known for launching the biggest Initial Coin Offering (ICO) on record, which raised over $4 billion. Unfortunately, the company was then compelled to pay a large fine for raising capital illegally.
The relationship between EOS Foundation and Block.one has not been good. Last year, the head of the foundation confessed that the network had failed as he blamed Block. And this year, ENF sued Block seeking $4.1 billion in damages. Things are also not doing well for Bullish, the EOS-powered exchange that was supposed to go public this year.
EOS has not performed well as a platform for developers as it has failed to gain traction. Indeed, a quick look at DappRadar shows that just a few projects have been built using the network. At the same time, data compiled by DeFi Llama shows that the network has a total value locked (TVL) of about $117 million. This is substantially lower than that of other newer projects like Cronos and Avalanche.
EOS price prediction
The four-hour chart shows that EOS price has made some recovery in the past few days. This performance is in line with that of other altcoins like Ethereum, Solana, and Shiba Inu. The coin managed to move above the important resistance level at $1.072, which was the highest level on June 8th of this year. However, it has pulled back below that level.
EOS has consolidated along the 25-day, and 50-day moving averages and is above the ascending trendline shown in green. Therefore, there is a likelihood that EOS will continue rising in the near term as other cryptocurrency prices rebound. If this happens, the next key resistance point to watch will be $1.2. A drop below the support at $1 will invalidate the bullish view.
