EOS (EOS) began a descending trend 53 days ago and despite the recent 27% weekly gain, the altcoin is not showing whatever signs of a reversal. As a result, investors are questioning whether the former height-5 cryptocurrency has what it takes to turn effectually after Daniel Larimer, CTO of the evolution company behind EOS, resigned in late 2022.

EOS price at Bitfinex in USD. Source: TradingView

The emergence of competing proof-of-stake smart contract platforms like Solana (SOL), Polkadot (DOT) and Avalanche (AVAX) maybe weighed on this 2022-era project. One potentially bullish catalyst could be the fact that Cake.one, the company responsible for the EOS token launch, owns over 160,000 Bitcoin (BTC), according to data compiled by BitcoinTreasuries.net.

EOS might not exist the preferred smart contract network of the twenty-four hours, only a handful of working finance, games, exchanges, and decentralized social applications are running. The transaction cost for the user is either negligible or usually covered by the wallet or application, which makes information technology a groovy contender for nonfungible tokens (NFTs) and social networks.

The tiptop decentralized apps on EOS. Source: DappRadar.com

Having deep pockets is an excellent strategy to land some heavy partnerships and Block.1 secured over $300 million from investors, including Peter Thiel, Mike Novogratz and Alan Howard. The EOSIO developer reportedly came up with some other $100 one thousand thousand cash injection for Bullish substitution, which completed its seven-week testnet on Sept. xv.

According to its website, all Bullish exchange transactions and states volition be validated and stored on EOSIO-based blockchains, enabling instant auditing and upholding integrity. Moreover, the visitor expects to brand $3 billion of assets available to the Bullish liquidity pools.

Retail traders lost confidence after September's crash

To sympathise how confident traders are about EOS property the recent $iv.50 support, one should analyze the perpetual contracts futures data. This instrument is the retail traders' preferred marketplace considering its cost tends to track the regular spot markets. Unlike quarterly futures, at that place is no need to manually roll over the contracts nearing expiry.

In any futures contract trade, longs (buyers) and shorts (sellers) are matched at all times, just their leverage varies. Consequently, exchanges will charge a funding rate to whichever side demands more than leverage, and this fee is paid to the opposing side.

Neutral markets tend to display a 0% to 0.03% positive funding rate, equivalent to 0.vi% per week, indicating that longs are the ones paying it.

EOS perpetual futures 8-hour funding charge per unit. Source: Bybt.com

Data reveals a complete absenteeism of bullish bets since Sept. xix when the cryptocurrency market plunged and caused EOS to drop from $5.25 to $four.15 in less than two days. However, the contempo rally'due south inability to boost leveraged longs can be explained past the EOS price being 25% below the $half dozen.xl acme but 30 days ago.

Pinnacle traders sold during the contempo rally

To understand how whales and arbitrage desks may have positioned themselves during this period, i should analyze the elevation traders' long-to-short ratio.

This indicator is calculated using clients' consolidated positions, including spot, perpetual and quarterly futures contracts. This metric provides a broader view of the professional traders' effective net position by gathering information from multiple markets.

OKEx top traders' EOS long/short ratio. Source: Bybt.com

As shown above, the 1.90 long-to-brusque ratio seen on Oct. three however favors longs but is the lowest level since the Sept. xix toll crash. Interestingly, the recent 27% weekly gains happened while the summit traders were reducing their bullish positions. Meanwhile, the current iii.0 long-to-brusque indicator sits slightly beneath the previous thirty-solar day boilerplate of 3.fifty.

Both retail and pro traders seem unconvinced that the Bullish commutation launch will exist enough to pause the prevailing bearish trend initiated in mid-Baronial. For EOS to regain investor confidence, it seems essential to bear witness that their decentralized applications are gaining traction as the competition gains ground in NFT and DeFi sector.

The views and opinions expressed here are solely those of the author and exercise not necessarily reflect the views of Cointelegraph. Every investment and trading move involves take a chance. Yous should conduct your own inquiry when making a decision.