By CCN: EOS price rose above $8 this Tuesday for the first time in over ten months.
The world’s fifth largest cryptocurrency by market capitalization climbed to $8.272 ahead of the Asian market open. While the price corrected lower towards $7.73 as the session matured, the move did not shake the overall bullish bias. EOS appeared stronger than other top-ranking digital assets by posting a 16-percent growth in the past 24-hours, bringing about $1 billion capital to its market valuation. Only Tron and Ethereum came slightly closer to EOS gains by surging 7.31- and 4.55-percent, respectively
The EOS price rally borrowed fuel from a top-secret fundamental. Block.one, the firm responsible for the development of the EOS blockchain protocol, will make a “big announcement” on June 1 this year. The rumor escalated further when the firm announced that it had purchased $20 million worth of RAM on EOS. The move visibly flirted with the market’s curiosity, prompting both traders and investors to increase their stakes in EOS.
While nobody still has a clue what the big announcement would be, the psychological impact is making people buy the rumor. Jacob Canfield, a prominent cryptocurrency analyst, suggested that it is vital for traders to manage risks against any potential mishappening, especially when they look to buy EOS at fresher highs.
“The fact that Block.one did a massive buy back of shares makes me think they’ve got a big announcement up their sleeve on June 1. I always buy the rumor, sell the news but I’ve seen EOS run even after news events.”
It is likely that until June 1, the EOS market could make holders out of its speculators. Fundamentally, the market can see some extended buying action, thus bringing the price close to levels with crucial support/resistance sentiment, as shown in the chart below:
EOS is currently overbought (RSI above 70), which could trigger at least a minor selling sentiment in the near-term. A pullback could lead the price towards as low as $6.936. Nevertheless, it is likely that bulls would initiate another run towards the intraday high of $8.272 while testing the range defined by $8.963-$9.447 as their interim long targets. And, if by any chance, Block.one’s big announcement turns out to be extremely bullish, then a price run towards $10.40 should not surprise.
Click here for a real-time EOS price chart.
This post was last modified on 28/05/2019 07:03