EOS has managed to gain more than 10% in value since the new year started. Today the coin is attempting to break above the 1-month high of $2.72 as it attempts to lay the groundwork for a more sustainable move higher.
Fundamentals: Facebook challenger enters beta version.
Block.one, the project behind the EOS coin, announced a new social media project called “Voice”. The aim of the new project is to challenge social media giants, such as Facebook, and provide the blockchain and crypto community with its own decentralized alternative.
The beta version is scheduled to go live on February 14, according to Block.one’s press release.
“Voice is the antithesis of everything social media is, enabling trusted interactions while bringing transparency into the entire promotion and advertising system within the platform.”
Moreover, the development team of Block.one has proposed major changes to its network in order to combat a poorly designed resource allocation system, the company said in a blog post.
Due to this issue, the majority of the network’s resources are unused despite significant demand which disables the network from operating in full capacity.
“Under the new proposed system, a user will pay a resource rental fee via a smart contract to be granted 30 days worth of CPU/NET from the total supply. After 30 days the rental must be renewed and pricing is automatically adjusted using a market based mechanism, based on changes in supply and demand for CPU/NET resources.”
The proposed changes would require users to rent network resources to avoid network congestion.
Technical analysis: Challenging major resistance
While the Block.one team continues with efforts to improve the network, the EOS coin has been enjoying a positive few weeks as well. After it printed a one year low at $2.16 in mid-December, EOS started to push higher in a bid to break the trend of lower highs and end the overall bearish environment.
For this to happen, EOS price would have to get past the ascending trend line (the blue line), which connects the previous higher lows. If this scenario materializes, the chart above suggests you should buy EOS to target the next level of resistance i.e. the 100-DMA at $2.91.
A major bullish scenario would assume a test of the down-slipping trend line (the red line), which currently comes at $3.12. A clean move above these levels would pave the way for more substantial gains for EOS.