EOS (EOS) is a tough coin to understand. It is seldom clear what drives the price of this cryptocurrency apart from a lot of FOMO and hype. That being said, it has a lot of loyal supporters most of which appear to be whales who just love to pump this coin. The above chart for EOS/USD on the daily time frame shows that EOS (EOS) has finally found a strong near term support atop one of the Fibonacci Bollinger Bands. The price of EOS (EOS) has followed a similar trajectory as that of Bitcoin (BTC) the last few months. However, before that, this was not the case as Eos (EOS) has remained fond of making its own moves.
As the chart for EOS/USD shows, the cryptocurrency managed to make a new all time high even during the bear market! This did surprise a lot of people but when you consider the large supply of Eos (EOS) tokens being controlled by its founders and creators, it is easy to see how this might have happened. Unlike projects like Ethereum Classic (ETC), Cardano (ADA) and Lisk (LSK) that have solid use cases and are more concerned about the project than the price, Eos (EOS) is more of a get rich quick scheme not just for the investors but also for its founders. The mastermind behind the project, Dan Larimer is known for jumping from one project to another. Most people in the crypto community might not know that the founder of EOS (EOS), Dan Larimer, is also the founder of Bitshares and Steemit!
In other words, Dan Larimer is the guy to follow if you want to pursue a get rich quick scheme, because he is good at creating flashy projects, getting the funding for them, and then abandoning them to move on to the next cash cow. However, if you are looking for a steady project that develops into something meaningful over time, Eos (EOS) may not be the one. That being said, I have no doubt whatsoever that Eos (EOS) will continue to see huge gains during the upcoming bull run, because creating interesting is very easy in this market. For EOS (EOS), it is totally a piece of cake. You use your $4 billion war chest to spark some interest with a pump here and a pump there, the next thing you know 200 buy orders are lined up in a split second waiting to take it higher from there.
Chart for EOS/BTC (1D)
So, could EOS (EOS) end the year above $20? Absolutely, it might end up even higher than that. Can it build something meaningful long term? Well, they have all the funding you could possibly need to build a smart contracts platform. $4 billion dollars for development of a platform like EOS (EOS) is a lot of money. However, there has to be the will, resolve and vision behind it to take it to where it needs to be. I believe Eos (EOS) had a very successful ICO and they have a great community of investors but I think greed is going to get in the way of progress on this one. So, Eos (EOS) might be a good short to medium term play but you have to wait and see before adding this one to your long term holdings.