- China’s affinity for EOS could bode well for large volumes if China embraces the cryptocurrency.
- Signs of short-term selling pressure are visible after the strong rally.
eos The cryptocurrency achieved a 25% rally in just three days. Unlike his previous fight to cross a resistance line in which he was stuck since the last week of January.
Is it just a temporary rally or is there something else?
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Recent data suggests that there may be more to this EOS rally than meets the eye and that China may be involved. Earlier this year we saw the possibilities Porcelain Potentially shifting gears in favor of a softer approach to cryptocurrency.
In other words, we could see a large increase in liquidity from China and EOS could absorb a substantial proportion.
Alt has previously been the preferred cryptocurrency for many Chinese traders. This is according to the classification made by the China Information and Industry Development Center.
managed to outperform some of the major blockchain networks, including EOS Network Ethereal according to classification.
The China Information and Industry Development Center has released its 24th ranking of crypto projects.$eos $ETH $iost $trx $XTZ $QTUM $GXC $ neo $XLM $ hyphen $lsk $BTS $BTC $ont $KMD $ steam $NULL $etc $atom $XRP $STRAT $xmr $NAS $nano $ark $ltc $waves $XVG $GOAL $BCH $ hour $ada pic.twitter.com/GrTJQeqnrc
– 🇺🇦 Crypto Differ – StandWith Ukraine 🇺🇦 (@CryptoDiffer) August 11, 2021
China’s less aggressive stance means that EOS may still continue to see strong demand from the country as it has in the past.
Now that the market is recovering from the crypto winter of 2022, bullish volume is returning. This is already evident in the performance of EOS.
It has already shown that it can still attract the attention of many investors as it happened on Friday (February 17).
The strong demand was enough to push it above the $1.12 price level, as well as the resistance of the 200-day moving average.
Although EOS is currently bullish, it is worth noting that the price is now almost in the overbought zone.
Therefore, the short-term profit potential is high. In terms of metrics, the weighted sentiment metric has experienced a jump in the last seven days. However, it peaked on February 17 followed by a sharp turn.
Source: Feeling
The pivot may indicate that the rally may be about to undergo a correction in the coming days.
We also saw a downtrend in price volatility prior to the pivot and after a weighted sentiment shift, the price volatility metric pivoted further.
realistic or not, here it is EOS market cap in terms of BTC
One possible reason for the extended rally despite the change in sentiment is that selling pressure has remained low thus far. Volume has decreased in the last two days, but the market capitalization is still holding up well.
Source: Feeling
Given the above conditions, it wouldn’t hurt to expect more selling pressure in the coming days.
