Cryptocurrencies are currently seeing significant positive momentum amid a continuous weakness of the US dollar. This is following a series of monetary and fiscal policy decisions from the Federal Reserve – the US central bank – and the US Congress.
Both Bitcoin and Ethereum have been in the spotlight as they comprise a large chunk of the market cap of the entire crypto realm. However, other players like Cardano or EOS may be worth a look, as they also seem to be benefitting from a weaker dollar.
Cardano vs EOS – quick summary
The seventh largest cryptocurrency by market cap, Cardano has been one of the mostly talked about cryptocurrencies this year. It has had a good 2020 so far, with ADA registering year-to-date gains of over 310 per cent, at the time of writing (July 30).
ADA’s exponential gains were triggered by the announcement of the long-awaited Shelley mainnet launch. Although the several month long uptrend seems to be exhausting, ADA’s technical analysis indicators remain optimistic.
Meanwhile, EOS continues struggling with its resistance level at $3.08. While the rest of crypto assets were experiencing new highs, EOS, which once traded in the top four cryptocurrencies has dropped down to the 11th position. For now, a return to the top of the list seems unlikely.
Both of these tokens have been traded since 2018, with Cardano reaching an all-time high of $0.39 in April 2018 while EOS traded as high as $15 per coin in June 2018.
Cardano vs EOS – ADA coin review
The weekly chart shows that Cardano managed to leave behind a major resistance level from the mid-2019s at $0.11 per coin after the cryptocurrency approached oversold territory during the February-March broad-market sell-off triggered by the coronavirus pandemic.
From there, ADA seems to have picked up some positive momentum as it has been rising steadily riding a fresh uptrend that has continued to push the price of the coin higher and higher.
However, the weekly RSI seems to be pointing to an overbought situation now, while there is also a bullish divergence showing up on the charts that traders should watch out for, especially as volume seems to be declining as well.
Meanwhile, the daily price action seems to be forming a price channel that could serve as guidance for traders to find the most profitable entry and exit strategies and target prices.
Moreover, the four-hour chart could be more useful at the moment to spot the direction that ADA could take in the next few days, as we can see that the price of the cryptocurrency has failed to surpass the $0.15 level twice – first at $0.155 and then at $0.15 – which could be read as a double-top bearish signal.
With all that in mind, Cardano’s next few moves could be pointing to the lower trend line shown on the daily chart before taking another attempt toward that $0.15 resistance. On the other hand, if the price manages to break through that threshold, the path could be free to continue to move up toward the $0.19 – $0.20 resistance seen on the weekly chart.
Coronavirus affects markets
EOS vs Cardano – EOS coin review
EOS was having a great run this year before the pandemic struck the global markets, sending the price of the EOS cryptocurrency down from $5 to $2 in a matter of days.
Even though the coin has managed to recoup some of its lost territory, it is currently approaching a late-April resistance level that could either push it up above the $3 level or down to $2.5, if it manages to remain above its current lower trend line.
As of now, the daily RSI seems to be pointing to an overbought situation, which could be favorable for the coin to push above this resistance, but first let’s have a look at the hourly chart to get a closer look at the situation.
The hourly chart shows that there was one failed attempt to jump above that $3.10 resistance seen on the daily chart, with the coin apparently moving towards a second try, possibly in the next few days.
Failing to surpass that level again could trigger a pullback toward the lower trend line shown on the daily chart, even though the volume seems to be high enough to successfully push over that threshold.
Cardano against EOS – which one to trade?
Based on the charts shown above, Cardano crypto token ADA could be facing some bearish momentum in the next few sessions, possibly heading to the lower trend line shown on the chart, as bears take hold after two failed attempts to break through the $0.15 level.
Traders could benefit from this move by shorting the coin at its current level, with a stop loss at $0.151 in case bulls take over the scene during the next sessions.
As for EOS crypto token, there might be significant upside ahead if the price of the coin manages to break above that $3.10 resistance, while a failed break would result in a double-top situation that could end up pushing the price down to the lower trend line.
There are essentially no winners in a contest of Cardano vs EOS, at least in terms of which is presenting the best trading opportunities. Both have seen some interesting price action in the past few weeks – and they are both providing enough signals for placing trades.
Eos vs Cardano: bottom line
There are many differences between Cardano and EOS at this point in terms of how their prices have been behaving and how they have been reacting to the latest momentum created by a weaker US dollar.
However, traders don’t necessarily have to pick one to place a trade at the moment, as both have been seeing some interesting price action. Follow the latest crypto market news at Capital.com and trade Cardano and EOS cryptocurrencies with CFDs.