EOS price is bouncing back: here are the possible reasons
EOS price has bounced back in the past few days as investors focus on the upcoming EVM integration and the potential business deal with Hong Kong. The coin jumped to a high of $1.23, which was higher than last week’s low of $0.90.
EVM launch and Hong Kong
The biggest EOS news was the decision by the developers to integrate Ethereum Virtual Machine (EVM) in the network. EVM is a piece of software that executes smart contracts in Ethereum’s network. It also computes the state of the Ethereum network after each block is added to the chain.
This is important for EOS because it means that dApps developed in its ecosystem will be compatible with those created in Ethereum. Ethereum is the biggest smart contract platform in the world. Therefore, this integration will suit developers and users.
This explains why other leading chains have launched their EVM platforms. In March, popular platforms like IOTA, Zilliqa, Filecoin, and Cardano are working towards integrating the EVM capabilities.
The other main reason why EOS price is rising is a tweet by Yves La Rose, the CEO of the EOS Foundation. In it, he said that he was traveling to Hong Kong for a nine-day business trip. He also hinted that he will speak with officials on how EOS can play a role in the economy.
Heading to Hong Kong this weekend! 🇭🇰✈️
During my 9-day trip, I’ll be working out of the @EOSNFoundation’s HK office and attending 20+ events.
One of the focuses of my trip is to collaborate with HK government officials to determine how $EOS can play a key role in their future.
— Yves La Rose (@BigBeardSamurai) April 5, 2023
The biggest risk for EOS is that its ecosystem is still small despite the fact that the developers raised over $4 billion in their Initial Coin Offering (ICO). Also, competition in the industry has grown, with some of the biggest names being Polkadot and Avalanche.
EOS price forecast
The daily chart shows that the EOS crypto price has been in a strong bullish trend in the past few days. In this period, the coin has moved above the 50-day and 25-day moving averages. The coin has formed a cup and handle pattern, which is usually a bullish signal. It has also formed a rising wedge pattern, which is usually a bearish sign.
Therefore, the outlook of the coin is a bit mixed at this point. A bullish view will only be confirmed if the coin manages to move above the key resistance at $1.3362, thee highest point on March 3. A drop below the support at $1.10 will invalidate the bullish view,
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