EOS, the native cryptocurrency of the open-source EOS Network, has recently achieved a significant milestone, with its market cap surpassing $1.70 billion for the first time since 2022. This surge comes after a dramatic 165% price increase over the past 30 days, pushing the price of EOS from $0.42 to $1.12. As a result, EOS’s market cap reached $1.74 billion, catching the attention of traders and investors alike.

Rally Boosted by Increased Derivatives Activity

One of the key factors contributing to this rally is the noticeable rise in derivatives activity. Open interest (OI) in EOS has significantly increased, which is a strong indicator of higher liquidity in the market. Open interest refers to the total number of outstanding contracts that have not been settled. A surge in OI signals that more liquidity is flowing into the market, reflecting greater market participation and increased buying pressure. This heightened activity further supports the bullish momentum for EOS, as more traders enter positions in anticipation of higher prices.

EOS’ Rise Despite Lack of Major Developments

Interestingly, the EOS rally appears to be largely driven by broader market trends rather than specific developments within the project. While there has been no major release from the EOS development team to trigger such a massive price move, the increasing interest in older coins and overall market conditions seem to have played a role. As a result, EOS has experienced a significant surge in demand, reflecting the overall momentum within the cryptocurrency market.

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The rise in EOS’s market cap to $1.74 billion suggests that the altcoin is gaining traction once again, even though it remains 95% below its all-time high. This milestone marks a remarkable recovery for the token, considering the challenges it faced in recent years. The price increase, however, comes without a major unlock of tokens in its circulating supply of 1.53 billion coins, indicating that the surge is driven by demand rather than changes in token availability.

Momentum Indicators Signal Further Upside Potential

On the technical side, EOS’s price chart shows bullish signals. The Awesome Oscillator (AO), a momentum indicator used to gauge the strength of price movements, is currently displaying positive readings. The positive AO reading, accompanied by a green histogram bar, suggests that market momentum is leaning toward the bullish side.

This momentum could push EOS to higher price levels. If the bullish trend continues, the price may rise toward $1.21, and further gains could take it to $2 in the short term. However, if selling pressure increases and the momentum shifts, the market could see a pullback, and the price may slide to around $0.93.

Conclusion

EOS’s recent surge in price and market cap demonstrates the increasing demand for the cryptocurrency, driven by rising derivatives activity and overall market momentum. While the project has not had major developments recently, the market’s focus on older altcoins and the positive momentum signals suggest that EOS could see further price appreciation. If the bullish momentum persists, EOS may continue to rise toward its next resistance levels, with potential targets near $1.21 and $2. However, as with all cryptocurrencies, market volatility remains a factor, and investors should be prepared for potential fluctuations.