EOS price jumps 20% for biggest gain in 15 months — What’s fueling the uptrend?

EOS rose roughly 20% to succeed in $1.66 on Aug. 17 and was on monitor to log its finest each day efficiency since Could 2021.

Initially, the EOS rally got here within the wake of its optimistic correlation with top-ranking cryptocurrencies like Bitcoin (BTC) and Ether (ETH), which gained over 2% and three.75%, respectively. However, the upside transfer was additionally pushed by a flurry of uplifting updates rising from the EOS ecosystem.

EOS/USD each day value chart. Supply: TradingView

EOS incentive program launch

On Aug. 14, the EOS Community Basis (ENF), a nonprofit group that oversees the expansion and growth of the EOS blockchain, opened registrations for its upcoming Yield+ incentive program.

The Yield+ is a liquidity incentive and reward program to draw decentralized finance (DeFi) functions that generate returns for his or her customers. In doing so, the service makes an attempt to compete with its prime blockchain rivals within the DeFi area, specifically Ether, Cardano (ADA), and Solana (SOL).

Because the starting of Yield+ registration, the whole worth locked (TVL) contained in the EOS swimming pools has increased from 94.71 EOS to 102.18 EOS, exhibiting a brief spike in demand for the tokens. The TVL will possible improve within the days main as much as the reward activation on Aug. 28.

EOS exhausting fork in September

As well as, EOS will rebrand to EOSIO later this week, followed by a v3.1 consensus improve known as Mandel in September, in keeping with Yves La Rose, the CEO of ENF.

The rebranding and improve function EOS’s symbolic divorce from Block.One, the corporate that initially designed the community, 9 months after the EOS neighborhood elected to cease the issuance of 67 million EOS, or round $108 million, to it on malpractice concerns.

La Rose noted that the upgrade would occur via a hard fork, which means that the brand new model (EOSIO) won’t be backward appropriate with the unique chain and can comply with new consensus guidelines.

A tough fork additionally signifies that within the occasion of a doable chain break up, all the prevailing EOS holders will obtain an equal quantity of tokens on each chains. In concept, that might improve EOS demand amongst speculators within the days leading up to the hard fork as witnessed within the case of Ethereum.

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Technicals trace at extra upside

From a technical perspective, EOS’s value eyes an prolonged bull development within the coming weeks

The primary main trace comes from a cup-and-handle formation on the EOS each day chart, confirmed by a U-shaped value trajectory adopted by a downward channel development. As a rule of technical evaluation, a cup-and-handle breakout ought to ship the worth increased by as a lot because the sample’s most top.

EOS/USD each day value chart that includes cup-and-handle breakout setup. Supply: TradingView

Consequently, EOS’s upside goal involves be close to $2.45, up virtually 50% from the worth on Aug. 17.

Associated: Is Ethereum really the best blockchain to form a DAO?

Nonetheless, as a word of warning, the breakout dangers shedding its momentum close to EOS’s 200-day exponential transferring common (200-day EMA; the blue wave) at $1.79. Such a pullback may have EOS check the 50-day EMA (the pink wave) at $1.21 as its subsequent draw back goal, virtually 25% beneath the present value.

The views and opinions expressed listed below are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails danger, it’s best to conduct your personal analysis when making a call.