EOS Bets Big on DeFi – Will It Influence Its Token Price?

EOS Network Ventures (ENV) has injected $2.4 million into NoahArk Tech Group. This strategic investment marks a collaborative shift in the EOS ecosystem, focusing on innovation and development in DeFi.

Despite this news, the EOS token appears to be stuck in a bearish trend. It has shed over 21% in market value since the beginning of the year.

EOS to Expand DeFi Ecosystem

The creation of NoahArk Tech Group, a synergy between Defibox Technology Limited and Hong Kong Noah Technology Limited, aims to strengthen the DeFi alliance within EOS. NoahArk Tech Group’s primary focus is decentralized exchange (DEX) activities.

“The reorganization aims to harmonize EVM product users with EOS enthusiasts, enhancing operational capabilities and building trust,” Eason, CEO of NoahArk Tech Group, said. 

A key aspect of NoahArk Tech Group’s strategy is the development of an interoperable liquidity aggregation protocol in collaboration with DeFi teams. The goal is to improve transactional flexibility and broaden the asset pool, reflecting a comprehensive approach to DeFi development.

Read more: EOS Crypto: A Complete Guide to What It Is and How It Works

ENV’s investment in NoahArk Tech Group represents an endorsement of the potential of decentralized exchanges within the EOS ecosystem

“Our investment is a commitment to the growth and development of DeFi on the EOS Network. We’re confident in their ability to innovate and believe this partnership will lead to significant advancements in the EOS ecosystem,” Yves La Rose, Director of ENV, said.

Price Struggles to Recover

The technical analysis of EOS on a daily time frame suggests a downward trend. This is evidenced by both its price movements and the RSI (Relative Strength Index) indicator

The price of EOS recently fell below a key ascending support line, which had been a foundation for its value for 76 days, reaching a low of $0.66 on January 8. Though a subsequent uptick in EOS price was marked by a bullish candlestick, the token continues to trade under the crucial resistance level of $0.74.

Additionally, the daily RSI supports a bearish outlook as it is declining and remains below the midpoint of 50. This trend is likely to persist unless EOS manages to surpass the $0.74 mark. Presently, a decline of 10% to the $0.65 horizontal support line seems probable.

Read more: How To Buy EOS (EOS) and Everything You Need To Know

EOS Price Performance. Source: TradingView

It is important to note that if EOS does overcome the $0.74 resistance, it could potentially lead to a 12% rise, reaching back up to the previously held ascending support trend line at $0.81.

Best crypto platforms in Europe | January 2024

Explore →

Metamask Portfolio
Explore →

Wirex App
Explore →

Explore →

The post EOS Bets Big on DeFi – Will It Influence Its Token Price? appeared first on BeInCrypto.

Leave a comment