Why is EOS Price Up 16% Today?

The EOS Network has unveiled the Vaulta Banking Advisory Council, a move that has propelled EOS price up by 16% in 24 hours to a two-month high. Following this rise, the EOS market capitalization has also surged past $1 billion for the first time since mid-February. 

Vaulta Banking Update Triggers EOS Price Rally to 2-Month High

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. 

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 77, a sign that EOS is about to be overbought, which could 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. 

EOS/USDT: 1-day Chart

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 -277%, indicating that short sellers are willing to pay a higher funding fee to maintain their positions. This suggests traders do not anticipate EOS to sustain the momentum, and they expect the price to reverse as traders sell to book profits. 

Fundibg Rate Heatmap

However, 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. 

The post Why is EOS Price Up 16% Today? appeared first on CoinGape.