EOS is one of the most powerful blockchain platforms for decentralized applications. Its ICO in 2017 was one of the most successful in the history of cryptocurrency. Since then, investors have been tracking the future of EOS and the return opportunities of this token. After a positive opening this year we explored some predictions of EOS for 2020, addressing the issue through a combination of technical and fundamental analysis and expert opinions.
The Future of EOS in 2020: Positive Prospects from a Technical and Fundamental Point of View
Determining the direction or future of a trading instrument such as cryptocurrency is not easy due to the many factors detailed in this article. The terrain of decentralized development is even tougher due to a high level of competition, with hundreds of projects seeking to displace Ethereum as the leader in this sector. Shortly after its launch, EOS became the main threat, due to its scalability and alternative solutions, such as programming decentralized applications on multiple CPUs simultaneously. However, despite the hype of EOS after its launch and its ICO – which lasted 1 year – the price of EOS dropped sharply in the second half of 2019.
In terms of technical analysis, the situation seems to be changing on a medium-term horizon, after the cryptocurrency broke up the downward slope it had been suffering for several months. In addition to showing a more hopeful technical scenario, EOS is also evolving for 2020. In January, the second version of the platform, EOSIO 2, was launched, as reported on the official website. This upgrade is designed to make development simpler and more secure.
“EOSIO was the first blockchain software to use the WebAssembly (WASM) engine to improve performance, but over time, we surpassed the existing goal of WASM engines and knew we could do more. Our solution: build our own engine, designed from scratch and with the blockchain in mind. EOS VM, our blockchain-built WASM engine, runs the mechanics of EOS up to 16 times faster than Binaryen, which was released with EOSIO 1.0”.
Key Reasons for the Growth of EOS in 2020
The following list explains some of the reasons why EOS could skyrocket in 2020. It is important to mention that there are external elements that can also have an unexpected influence on the market (e.g. regulations), so we suggest to keep abreast of the latest news in the cryptocurrency industry and maintain appropriate risk management.
- Launch of the EOSIO 2.0 platform: This resource, aimed at developers, could promote the growth of the ecosystem and the creation of new projects and cryptocurrencies that will operate under the tutelage of EOS.
- Integration of Blockchain: The ability to communicate asynchronously between public and private blockchains.
- Favourable technical scenario for the beginning of 2020: After the technical analysis made in this article and consultation of perspectives from other experts.
- Unlike others such as CoinMarketCap (where digital currencies are listed by market capitalization), the Chinese cryptocurrency ranking lists offers projections based on factors such as real-world use cases. It is carried out by the Centre for Information and Industry Development (CCID) under the supervision of the Ministry of Industry and Information Technology of the Chinese government. In its last update in December 2019, EOS remained at the top of the Chinese cryptocurrency ranking, surpassing others such as ETH, TRX and even Bitcoin.
- Bitcoin’s halvening could lead, not only to a rise in Nakamoto’s token, but the entire crypto market.
Technical Analysis of EOS with Possible Scenarios for 2020
The following technical analysis addresses some of the scenarios and levels of interest that could be developed over the course of 2020. However, accurate predictions of EOS in 2020 cannot be made due to the intrinsic volatility of these markets, so we suggest caution, testing and documentation before trading or buying EOS. The daily analysis has yielded several interesting results which we discuss below.
EOS/USD: Important Observations and Areas of Interest
EOS technical analysis vs. dollar (EOSUSD) for January 29th, 2020. Bitfinex data analysed with the TradingView tool.
We have evaluated several indicators for the daily candlestick chart obtaining valuable results:
- The EOS exchange rate with respect to the dollar has been in an upward scenario since May 2019, with a clearer downward channel as of July of the same year. This is clear from the graph, as is the upward breakout in January 2020. In the middle of this month, the downward trend of the highs was broken with a subsequent retracement that confirmed a change in direction.
- In addition to this positive indicator, EOS broke through the resistance marked by the most common reference moving averages (MA50, MA100, MA200), very recently exceeding the long-term moving average. This is in addition to the recently mentioned positive data.
- As of the date of this analysis, EOS exceeds $4 and faces psychological resistance in this range.
- On the upside, Fibonacci marks several intermediate levels of interest, which will act as medium-term resistances if the bulls are convinced to continue to inject bellows into EOS. Levels near $4.6; $6.17; $7.26 and $8.55 – $8.65 USD stand out.
- Despite the bullish outlook highlighted in the analysis, the RSI shows danger of being overbought, so we could see a retraction/stabilization in the short-term. In this case, crypto could test support around $3.70 USD before hitting the MA200 curve.
Other Technical Considerations and Projections for EOS
EOS lows in the last year: In a sharp drop, EOS reached a level of $2.15 USD in December 2019, followed by a rapid recovery with gains of almost 100% in one month.
EOS highs in the last year: Recorded in June 2019, when EOS briefly touched $8.65 USD. At its record high in 2018, it exceeded $22 USD.
In general, the analysis indicates an upward break that has not yet been seen in other cryptocurrency counterparts. However, we feel that the evolution of the price should be monitored for changes in order to determine the outlook of the token.
EOS Predictions for 2020: Expert and Amateur Opinions
In this section we evaluate some of EOS’s predictions for 2020, as reported by several online sources and respected enthusiasts. These are highly speculative, so we recommend caution:
- An article in U.today offers an optimistic projection for EOS in 2020. According to the analysis, they expect EOS to hit highs between $45 and $70 in 2020. This prediction seems a little uneducated to us, as it is based only on fundamental elements about the project and its competitiveness with the ether.
- Further analysis by Satis Group in 2018 showed that one of the few projects that could survive in the smart contract arena would be Ethereum. It projected negative results for EOS, setting a target price of $3.6 USD for the year, 2021.
- The Wallet Investor website, which performs automatic analysis according to various technical indicators, releases a bullish estimate for mid-2020, where EOS could rise to $7. However, it would fall again towards the second end of the year, reaching new lows.
- The TradingBeasts website considers that the price of EOS in 2020 will be $56.81 USD and the Italian site Previsionibitcoin considers that the price of EOS in 2020 will be $68.97 USD.
As you can see, the projections are very distant, and it will be better to maintain an active supervision if you decide to trade with this currency.
What do these Predictions Conclude about EOS?
The future of EOS pricing remains unpredictable but considering that it is positioning itself as one of the default options for developing new decentralized applications and launching new tokens to the ‘crypto’ world. Despite the volatility to which it has been subjected to, EOS remains firmly placed within the 10 most popular and valuable cryptocurrencies in CoinMarketCap. With a historical reference, we can evaluate some of the levels of interest for EOS. So, although nobody could predict the future of EOS with 100% certainty, it is possible to have an educated guess at the direction it will move.
Updates on the platform could bring new investments into the ecosystem. In conjunction with a positive opening in 2020, and several innovative technical elements, this year is already looking bright for EOS. However, tough competition and external factors will always be present, so we suggest caution.