Why is EOS Price Up 20% Today?

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Updated
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Why is EOS Price Up 16% Today?

Highlights

  • EOS price has risen to a two-month high after a 16% gain in the last 24 hours.
  • The Vaulta banking feature has been driving a surge in buying activity around EOS, with the RSI soaring to 77.
  • The funding rate heatmap shows extreme short positioning on EOS, as short sellers expect the price to drop.

EOS price is up by more than 20% today, defying the bearish headwinds in the broader crypto market These gains come after the EOS network unveiled the Vaulta Banking Advisory Council which includes top banking experts and seasoned regulators. The EOS price uptrend has also pushed the token’s market cap above $1 billion, bringing it to its highest level since mid-February.

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Vaulta Banking Update Triggers 20% EOS Price Rally 

The Vaulta Banking feature, which was introduced by the EOS Network last month, has been boding well for the EOS token. In the last seven days, EOS price is up a staggering 40%, with the ecosystem’s growth playing a major role in boosting buyer confidence.

Vaulta is a feature that seeks to bridge the traditional banking industry with Web3. With traditional financial institutions like BlackRock expanding their crypto presence, such a tool could gain massive adoption. 

More importantly, EOS has revealed the Vaulta Banking Advisory Council. It noted, 

“To bridge traditional finance and Web3, we’ve brought together seasoned leaders from banking, fintech, and digital assets. Their strategic guidance ensures Vaulta stays compliant, credible, and ready for mass adoption.” 

At the same time, it added that Vaulta will bring Web3 to portfolio investment including real estate and commodities through Real World Asset (RWA) tokenization. 

These developments around Vaulta are driving a massive rally for EOS price despite a broader crypto market crash

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EOS Technical Analysis After Bullish Breakout 

The gradual uptrend recorded by EOS price in the last seven days and the uptick in buying activity have triggered a bullish breakout from a descending parallel channel. This breakout suggests that the trend has flipped from bearish to bullish. 

The RSI indicates that the EOS price rally is due to a surge in buying activity. This indicator stands at 78, a sign that EOS is about to be overbought. This may cause a short-term reversal before the trend continues. However, the ADX line is rising, which shows that the bullish momentum is getting strong. 

These bullish signals show there is room for more upside for the EOS price, which could see it reach the 227.2% Fibonacci level of $1.05. 

Why is EOS Price Up 20% Today?
EOS/USDT: 1-day Chart
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Funding Rate HeatMap Shows Extreme Short Positioning

The funding rate heatmap from Coinglass shows extreme short positioning on the EOS token. At press time, EOS had a funding rate of -201%. This indicates that short sellers are willing to pay a higher funding fee to maintain their positions. It further suggests traders do not anticipate EOS to sustain the momentum as traders sell to book profits. 

Why is EOS Price Up 20% Today?
EOS Funding Rate

However, most of these short positions are being obliterated. In the last two days, more than $3M in EOS short positions have been closed, causing additional buying pressure.

Additionally, despite the increased number of short sellers, the Vaulta banking feature, bullish predictions from other analysts, and the surge in buying activity depicted on the 1-day chart suggest that it is possible for the altcoin to extend its gains, and possibly reach $1. 

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Frequently Asked Questions (FAQs)

1. Why is EOS Price up 16%?

EOS price has gained by 16% today due to a surge in buying activity. Traders have been accumulating EOS after it unveiled the Vaulta Banking feature.

2. Can EOS sustain its gains?

EOS can sustain its gains if the buying pressure remains strong. However, the extreme short positioning seen with funding rates indicates some traders anticipate a reversal.

3. What’s next for the EOS price?

The next target for EOS price is a breakout past $1. Flipping this psychological level will pave the way for more gains.
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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience decoding blockchain trends, price movements, and market dynamics. She holds a Bachelor’s Degree in Commerce (Finance) from Kenyatta University, blending a solid academic foundation with a sharp eye for technical analysis and a deep understanding of on-chain data. Her work delivers clear, data-driven insights that empower investors to navigate the fast-evolving digital asset space with confidence. When she’s not analyzing the markets, Mary enjoys reading and travelling.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.