The crypto market is now seeing a massive positive momentum in the middle of an ongoing weakness of the U.S. dollar. This is following a number of monetary and fiscal policy decisions taken by the Federal Reserve, which is the U.S. central bank, and the U.S. Congress.
Both Bitcoin and Ethereum have occupied the spotlight as they include a rather large portion of the market capitalization of the entire crypto domain. Still, other players such as Cardano or EOS may be worth a look, as they seem to be taking advantage of the weaker dollar.
Cardano vs. EOS – A Quick Summary
Cardano, the seventh largest coin by market cap, has been one of the most brought-up topics this year. It has had a good 2020 until now, with ADA reporting year-to-date gains of more than 310 percent at the time of the press.
ADA’s gradual gains were caused by the announcement of the long-anticipated Shelley mainnet launch, and even though the several month-long rise seems to be exhausting, ADA’s technical analysis indicators remain positive.
On the other hand, EOS keeps struggling with its resistance level at $3.08. While all the other crypto assets were undergoing new highs, EOS, which once was in the top four cryptocurrencies, has jumped down to the 11th position. At least for now, a return to the top of the list seems improbable.
Both of these tokens have been on the market since 2018, with Cardano upping to an all-time high of $0.39 in April of 2018, while EOS traded as high as $15 per coin in June of the same year.
ADA Coin Review
The weekly chart below shows that Cardano left behind a major resistance level from the mid-2019s at $0.11 per coin after the cryptocurrency headed towards oversold territory during the February-March board-market sell-off caused by the shutdowns.
From there, ADA appears to have gained some positive momentum as it has been going up at a steady pace, riding a new uptrend that has continued to lead the coin’s price higher and higher. Still, the weekly RSI seems to be indicating an overbought state now, while there is also an optimistic divergence appearing on the charts that traders should monitor, more so as volume seems to be decreasing as well.
In the meantime, the daily price appears to be forming a price channel that could be used as a guidance for traders to get to the most advantageous entry and exit strategies as well as target prices.
In addition, the four-hour chart could be beneficial for now to spot the direction that ADA could take in the next few days, as we can see that the price of the coin hasn’t surpassed the $0.15 level twice, which could be defined as a double-tap bearish signal.
Considering this, Cardano’s first few moves could be showing towards the lower trend line depicted on the daily chart before trying again to pass that $0.15 resistance. On the other hand, if the price manages to go higher than that threshold, the path could be free to go higher to the $0.19 or $0.20 resistance seen on the weekly chart.
EOS Coin Review
EOS had a great run this year before the crisis struck the global markets, lowering the price of the coin from $5 to $2 in a few days only.
Although the cryptocurrency has managed to retrieve some of its lost price, it is now approaching a late-April resistance level that could either take it to above the $3 level or down to $2.5, if it can stay above its current lower trend line.
For now, the daily RSI is showing an overbought situation, which could be in the advantage of the coin, helping it pushing above this resistance.
The hourly chart depicts that there was one failed try to jump above that $3.10 resistance seen on the daily chart, with the cryptocurrency seemingly moving towards a second attempt, possibly in the following days.
Failing to pass that level again could generate a pullback toward the lower trend line shown on the daily chart, although the volume seems to be sufficiently high to successfully get over that threshold.
Cardano vs. EOS – Which One is Better for Trading?
Considering the charts shown above, Cardano could be facing some difficult momentum in the following seasons, probably heading to the lower trend line, as bears seize after two failed attempts to pass the $0.15 level. Traders could take advantage of this move by shorting the coin at its current level, with a stop loss at $0.151 in the event bulls overtake the scene sometime during the next seasons.
When it comes to EOS, there might be an important rise if the coin’s price manages to pass that $3.10 resistance. At the same time, a failed break would end up with a double-top state that could generate a lowering of the price.
There are basically no winners in a contest of Cardano vs. EOS, at least with regards to which is showing the best trading chances. Both have faced some rather interesting price action in the last few weeks, and they are both offering sufficient signals for placing trades.
Overall, traders don’t necessarily have to choose one to place a trade for now.