EOS, the crypto currency that hit above $22 late April, has significantly depreciated during the last 7 days. Nevertheless, it’s still the fifth largest cryptocurrency by market capitalisation. And on Thursday, it was one of few best performing cryptocurrencies.
During the Asian session, the cryptocurrency had several attempts to break the $14.00 mark against USD. However, the European traders didn’t join the Asian trend, and by the end of the day EOS/USD slipped below the $13.00 mark, targeting $12.20 area seen the day before.
There were no special drivers behind the coin’s dynamic, meaning the key trigger of sell-off was broad based depreciation of cryptocurrencies. However, there are some arguments in favour of the asset.
Five Reasons
1. It's important to note the best performance of EOS among its crypto colleagues even when the whole market is selling cryptocurrencies. It means the asset has good potential to reach new highs, once the market mood turns positive.
2. There are fundamental reasons for such further EOS appreciation. For example, it is worth mentioning that Brendan Blumer, Block One's CEO, claims EOS has "the most powerful infrastructure for building decentralized applications (DAPPs)". As more and more companies start using this platform for decentralized applications, it's a solid argument for any crypto investor to pay special attention to the cryptocurrency.
3. Let's see the technical picture. The price is meandering a little bit lower the 50% Fibo. This is a critical mark that should sustain the bullish pressure. If the bulls succeed, they meet the next resistance at 20-day SMA at $16.60.
4. EOS has already lost 50% of its value, and for those traders who really believe in its potential, it’s a good opportunity at an attractive price.
5. The recently announced assistance from Ethereum co-founder Vitalik Buterin may become a good sign for investors. The EOS development team is currently working at high speed ahead of the scheduled mainnet launch on the 2nd of June when EOS will migrate from the Ethereum network onto its own blockchain.