EOS could continue to recover despite low platform usage, the analyst said
EOS, like most major altcoins, is currently caught in a short-term downtrend caused by Bitcoin's recent rejection at $ 8. 400 came about. However, EOS is still in a steady upward trend if you look at the 30 – day price movement and technical analysis could indicate that it is ready for a further increase.
One factor that could offer some resistance to a short-term uptrend is the fact that users have left the blockchain platform even though their transaction volume has seen steady growth.
EOS sees a stable transaction volume, but the lack of users remains a big problem
EOS is one of many so-called “Ethereum killers” who started trying to provide a decentralized blockchain platform that offers scalability to projects that build on it.
However, the ongoing crypto winter has dried up the markets for decentralized applications (Dapp), leaving only a handful of active projects that tend to prefer Ethereum over the other competing platforms.
This is significant if you look at the EOS user data, which has decreased significantly in the past few months, from almost 110 k users in October 2019 to just over 10 k users – according to the data from Dapp Review. Interestingly, it should also be noted that EOS transactions increased over the same period, which expresses an apparently inverse correlation with usage.
Missing active users cannot prevent EOS from starting a mass rally
Even if such fundamental factors can cause long-term problems for the value of an asset, it seems in the short term that all price promotions are driven solely by technical factors, which is good for EOS.
Scott Melker – a well-known cryptanalyst on Twitter, known alias “The Wolf of all Streets” – said in a recent tweet that EOS is one of the few major cryptocurrencies that is currently due to the disruption to its downward trend seems to show a remarkable upward movement.
“EOS”: This means that $ EOS has actually broken its downward trend and is currently testing the channel again as support. That looks like a bullish AF if BTC is actually rising. ”
Proof of text: cryptoslate