Despite outperforming the cryptocurrency market, the uptrend of EOS may be slowing down. EOS is an outlier at the time of writing, up 7.5% in the past 24 hours. In contrast, the crypto sector fell 3.5 percent, according to Coinmarketcap. However, the upward momentum of the trend is expected to be stalled as EOS is about to hit a key resistance level.
EOS’ strong rally in March was partly driven by the EVM’s planned launch on April 14, 2023. EOS Network Foundation CEO Yves La Rose announced on Twitter that the EVM will be 3 times faster than BNB and Solana combined.
woodbrother will get entry point at level resistance the first,276 Dollar?
EOS/USDT | Source: transaction view
EOS consolidated in a range between $1,022 and $1.13 between mid-January and February before a bullish breakout occurred in mid-February. But the bulls were rejected after the price touched the resistance at $1,276. If this trend repeats itself, EOS could face a similar rejection and present a short opportunity for the bears.
Bears can take profits at $1,119 or find immediate support at $1,107. A sustained decline above these levels is expected to close at $1.044 or $1. Therefore, stops can be placed above $1,276.
Alternatively, the bulls can break through the barrier and look for more profits down the road. The next key resistance levels are at $1,372, $1,500 and $1,748. A move above $23,000 for BTC could accelerate the upside momentum needed to break the $1,276 mark.
Rising RSI (Relative Strength Index) and MFI (Money Flow Index) indicate increased buying and accumulation pressure. Also, the Chaikin Money Flow (CMF) is moving north, suggesting the market favors the bulls.
Development activity rises, but funding rates stagnate
source: Santiment
According to Santiment, EOS has seen a sharp increase in development activity, indicating that the network is actively being built, presumably in preparation for the EVM launch event in April.
An increase in development activity could boost investors’ prospects for the native token. Interestingly, weighted sentiment has improved and shown higher positivity, indicating increased investor confidence in EOS.
However, the funding rate has been surprisingly stagnant, suggesting that the EOS bull run has not attracted much demand in the derivatives market. Such limited demand could weaken the uptrend and could tip the scale in favor of the bears.
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Ming Ying
According to AMBCrypto
