The bitcoin price has slightly corrected to $9,200 after rising above $9,500. The valuation of the cryptocurrency market has increased to $425 billion, moving towards $450 billion, where it was in the beginning of March.
EOS Down 15%
EOS, the fifth most valuable blockchain protocol in the cryptocurrency market, has declined by more than 15 percent after recording a meteoric rise in price over the past 48 hours. Ari Paul, the co-founder of cryptocurrency hedge fund BlockTower, stated that if EOS had been able to sustain its momentum, it could have been possible for the ERC20 token to surpass Ethereum in value.
“Price observation: EOS is an ERC20 smart contract currently valued at $16 billion. If it repeated the run of the last two weeks, it would surpass ETH’s value, while residing on top of it. This is an observation; not at all a prediction nor investment commentary,” said Paul.
Since peaking at $22.86, EOS has fallen to $18.53, from about $17 billion to $15.2 billion in valuation. On a weekly basis, within a seven-day period, EOS has still more than doubled in value as it was priced at $11 on March 23.
Analysts have attributed the rise in price of EOS to the launch of its mainnet scheduled to be executed on June 1. EOS, as a scalable and flexible blockchain network based on the Ethereum protocol, has been anticipated by decentralized application developers throughout the past year and its mainnet launch would allow dapps to be deployed on its blockchain network.
On April 28, momentum oscillators including Williams’ Percent Range and Relative Strength Index (RSI) demonstrated overbought conditions for EOS. As the market continued to acquire more EOS at overbought conditions, the token experienced a 15 percent correction over the past 24 hours.
Currently, while the RSI of EOS still remains quite high, it is no longer demonstrating overbought conditions and the market has stabilized. As long as EOS does not demonstrate significantly overbought conditions, in the short-term, at least throughout the countdown of its mainnet launch, it is likely that the price of EOS would increase.
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Bitcoin Trend
It is optimistic that bitcoin has been able to sustain its momentum above the $9,000 region subsequent to recording a 10 percent increase from the $9,800 mark. If bitcoin holds its trading volume and remains above $9,500 in the next 24 hours, it is possible for the price of bitcoin to breach into the $10,000 in the first week of May. Breaching the $10,000 level is expected to lead bitcoin to its previous levels, potentially to a major support level at $12,000.
Both simple and exponential moving averages show a positive short-term trend for bitcoin and given that its RSI has dropped to 58.7 points over the past few days, it is likely that the bitcoin price will record a small rally in the short-term.
With executives from the finance and banking industry moving to cryptocurrency hedge funds and investors, and the demand from institutional investors rising for cryptocurrencies globally, the cryptocurrency market is an ideal position to potentially secure a valuation of $0.5 trillion, as it did in November 2017.