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As bulls and bears engaged in stiff competition, EOS investors have endured weeks of volatility. The tension in the market started during the second half of January after a handful of investors decided to book early profits.
At the time of writing, the EOS token was trading at $1.25 after gaining 14.7% on the last day, with a 24-hour trading volume of $574.9 million. This represents a 233.7% increase from a day ago and points to a recent surge in market activity.
Given the token’s price is up 18% in the last week, EOS is outperforming the broader crypto market that has only recorded a 9% increase within the same period. EOS is also doing better than similar smart contract cryptos that are up only 11.3%, based on CoinGecko data.
EOS Foundation Network Launches Series 5 Pool Funding
The EOS Network is a generation-3, open-source blockchain platform boasting high performance, flexibility, security, and developer experience. Secured through delegated Proof of Stake (PoS), the network stands out for its technological stack and community resilience. It also prides itself for being a community-led foundation (ENF) withe stellar user support.
The positive outlook for EOS crypto comes after the EOS Foundation Network (ENF) launched a new pool funding, christened ‘Pomelo Grants Season 5’.
In our continued commitment for supporting public goods on #EOS, we are excited to announce the #ENF's @PomeloGrants Season 5 matching pool funding!💰
$150k in $EOS will be contributed 🤑
🗓 Feb 22 – Applications Open
🗓 March 1 – Donations Begin— EOS Network Foundation (@EOSNetworkFDN) February 17, 2023
Pomelo is a crowdfunding platform that allows anyone to request funding for public goods from the EOS community. The community’s donations determine how matching funds are allocated.
The project uses quadratic funding to allocate public goods financial support in the best way possible, meaning projects with more unique donors get more funds. They choose the most mathematically optimal approach because supporting public goods is integral to ENF’s mission for the EOS ecosystem.
According to a Medium announcement, the launch sets the stage for anyone building public goods on EOS to develop a grant at Pomelo.io, with applications to open beginning February 22.
February 22–March 15: Create your grant applications for public goods. As grants are submitted, the Pomelo team approves the ones that qualify to participate.
In the fifth series, the foundation provides $150,000 to the matching pool, with all Pomelo Season 5 non-fungible token (NFT) sales and last season’s Pomelo fees to be added as matching funds.
Will Bulls Sustain The EOS Rally?
Since the news of season five of ENF’s Pomelo Grants for developers broke out, the token has rallied 23% in two days. The token’s trading volume is up 233.7% since the news, and is represented by the long green bar on the chart (below). Bulls are building atop yesterday’s gains and have already raised the price by almost 6% to an intraday high of $1.281.
At the time of writing, EOS was trading at $1.25 as bulls fought to breach the major resistance. If buyer momentum increases past this level, it will eliminate the obstacle preventing more gains for the blockchain token. It is worth mentioning that this hurdle has kept the price stunted since September, and breaking past it would give EOS price the chance to try to regain its previous value to the range high around $1.8.
EOS/USD Daily Chart
Beyond the major hurdle, bulls would be looking at a 43.33% ascent to the $1.8 target. For such a climb to pan out, however, the price would have to retrace certain steps in the journey. The 52.7% Fibonacci retracement at $1.3369 was the first logical move, followed by the 66.7% Fibonacci retracement at $1.47.
Further, the EOS token price would have to retag the 78.6% Fibonacci retracement at $1.59. If their ambition remains intact or grows, they could reach the 100% Fibonacci retracement at $1.8, completing a 43.33% rise from the current price level.
The price of EOS was enjoying support offered by the 200-day Simple Moving Average (SMA) after bulls flipped it from resistance on Friday. This barrier also proved to be a formidable roadblock, keeping EOS price stunted since September 14. Therefore, the bulls’ move to flip it yesterday adds confidence to the positive outlook.
Also bolstering the positive outlook was the upward-moving 50-day SMA, the Relative Strength Index (RSI), and the Moving Average Convergence Divergence (MACD) indicators. These showed that the path with the least resistance was upward. The price strength at 68 was also a good sign, showing bulls were in control.
Notice the MACD (line in blue) had called a buy signal in yesterday’s trading session when it crossed above the signal line (orange). This, coupled with the deep green histograms, showed that bulls heeded the ‘call to buy’ and were flocking to the market.
On the downside, investors could succumb to the selling appetite as they did after the rally beginning December 4 and another one beginning January 8. This could make the bull run short-lived, in which case the price could descend lower than the 200-day support. Below this level, the price could revisit the 23.6% Fibonacci retracement at $1.05 or cower to the $0.82 support floor.
The possibilities for a downtrend were plausible given the position of the RSI, just an arm-stretch away from the overbought level (70), where buyer momentum is considered worn out.
EOS Alternative
If investing in EOS seems too risky, consider FGHT, the native token of the Fight Out ecosystem.
FGHT is a promising crypto, boasting a distinct customer-oriented approach in the Move-to-Earn (M2E) sector. Fight Out has gamified maintaining a healthy lifestyle by offering users amazing rewards in the form of redeemable REPS.
https://twitter.com/FightOut_/status/1623324489214730240
The platform also monitors all forms of fitness activity by leveraging innovative technological approaches, including but not limited to in-gym sensors.
Fight Out’s ticker token, FGHT, is currently on the presale stage and has raised upwards of $4.30 million as the countdown to the end of the stage continues. Buy FGHT now before the price increases.
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