EOS’ major price correction nullifies its YTD gains | Invezz

Cryptocurrency project EOS saw a sharp rise in its price in the first month and a half months of 2020. However, ever since then, its price saw a strong correction that culminated during the mid-March price crash. After that, EOS’ price seemingly lost its strength, and it remained relatively stable, compared to its original performance on the YTD chart.

In fact, the coin’s performance was so disappointing, that it is currently returning negative yields for this year.

EOS crashes while competitors flourish

EOS currently sits as the ninth-largest coin based on its market cap. However, on a YTD timeframe, it went 3.61% below zero, which made it pretty much the first crypto to go negative since March 2020 crash.

The bad performance is likely not due to the type of project that EOS is. On the contrary, its largest competitors, Ethereum and Tezos, performed extremely well.

Ethereum went up by 54%, while Tezos skyrocketed by 96%. EOS, on the other hand, continues to see major losses, as mentioned.

Crypto analysts interested in determining the exact reason for EOS’ behaviour, and they came up with the conclusion that it is a result of tail-the-trend behaviour. Basically, they compared the project’s data to that of the world’s largest cryptocurrency, Bitcoin (BTC), and they discovered an extremely strong correlation between the two.

EOS following Bitcoin’s lead

The similarities in their performances strengthened significantly following the March 2020 crash. The correlation was never perfect, but it is strong enough to explain EOS’ bad performance.

For example, after the March crash which brought BTC down to $3,800, the project saw a strong 150% rebound. Meanwhile, EOS followed by seeing a rebound of its own, albeit one of 118%.

However, Bitcoin did not manage to close above its critical technical resistance, which sits near $10k. As a result, its price experienced a series of corrections, and it dropped by 13% over the course of May.

And, considering Bitcoin’s impact on the altcoin market, a similar sentiment caught countless other assets that saw a strong correlation with BTC. EOS was, unfortunately, among them, and it corrected by over 30%. The project went from $3.12 to $2.16.

Right now, EOS’ price sits at $2.52, although it is very likely that the project will continue to follow Bitcoin’s performance, which is likely to cause more damage to it.