EOS, the native token that powers the EOS blockchain, surged on Wednesday after breaking above key resistance in the $1.40 per token area. The cryptocurrency was last changing hands just below $1.60 and up about 14% on the day, making it the best performing top 50 cryptocurrency by market capitalization, having been as high as the $1.66s earlier in the day.
EOS’s bullish momentum run out of steam ahead of its 200-Day Moving Average in the $1.75 area and bulls may now be looking out for a drop back towards the $1.40 area, which is now supported, to buy the dip.
Analysts cited two positive developments within the EOS blockchain’s ecosystem as helping power the cryptocurrency’s recent gains. Firstly, the EOS Network Foundation (ENF) that oversees the development of the EOS blockchain recently opened registrations for its upcoming so-called Yield+ incentive program. The program is designed to attract Decentralized Finance (DeFi) applications to the EOS network, putting it in competition with the likes of Ethereum, Solana and Cardano.
🚀 The Yield+ Launch Is Imminent!
Designed to build economic activity on $EOS through incentivizing DeFi dApps that increase TVL and generate yield.
August 14th — Registration opens August 28th — Rewards for TVL begin
Get all the details here: ➡️ https://t.co/fFOZCOEG4y ⬅️ https://t.co/b6q4Xmlay7 pic.twitter.com/ePZPkEiu4I
— EOS Network Foundation (@EosNFoundation) August 10, 2022
Secondly, analysts said that optimism about an upcoming network upgrade in September was also fuelling EOS upside. According to a series of tweets from ENF’s CEO Yves La Rose, the EOS blockchain will undergo a hard fork upgrade on 21 September that will “sever all ties from @B1” (Block.One, the company that originally designed the network). “EOS can finally break through its glass ceiling and reach its full potential,” Yves La Rose said.
On September 21, $EOS will undergo a hardfork to upgrade to the #EOS Network to the new codebase that the @EosNFoundation has been meticulously building towards.
This consensus upgrade severs all ties from @B1 and represents the official beginning of #TheNewEOS!
— Yves La Rose (@BigBeardSamurai) August 15, 2022
Bitcoin was last trading broadly unchanged on Wednesday in the upper $23,000s, as it awaits key macro events later in the day. Some technicians have expressed concerns in recent days that Bitcoin may have formed a technical pattern that can be considered bearish and indicative that a drop back under $20,000 could be on the cards. In the past few weeks, Bitcoin has formed a “bearish wedge” pattern, they say. Bearish Wedges and Bearish Flags can be described as a period of consolidation of even a slight rally, but within the confines of an ongoing bear market rally.
However, pseudo-anonymous cryptocurrency Twitter analyst dave the wave, who successfully predicted BTC’s collapse in May 2021, argued on Twitter recently that there is “plenty of upward pressure building” in the cryptocurrency. The “weekly MACD [is] about to cross from an oversold position well below the zero-line”, he added, which is “bullish”.
Plenty of upward pressure building at a level of resistance.
Weekly MACD about to cross from an over-sold position well below the zero-line.
Bullish. pic.twitter.com/zwy5NnVj7P
— dave the wave🌊🐫 (@davthewave) August 13, 2022
XRP, the cryptocurrency that powers Ripple’s global payments network, was last trading flat on Wednesday in the $0.37s per token, well within recent intra-day/week ranges. Like other major cryptocurrencies, it awaits key macro events including US Retail Sales data and the Fed minutes later in the day.
However, XRP traders are also cautious ahead of a key court ruling expected sometime this week. FX Empire’s head of cryptocurrency analysis Bob Mason, who has been closely following the case, explains that “in late July, the SEC filed an objection to a July Court ruling denying its attempt to shield the William Hinman speech-related documents under the attorney-client privilege”.
Analysts think that comments made by Hinman, a former SEC Chair, if available to use as evidence, could swing the case in favor of Ripple, which stands accused of being unregistered security by the SEC. A positive ruling could quickly send XRP above $0.40 per token.