EOS spiked above $8.00 on Tuesday en route to fresh ten-month highs after the blockchain network teased a “big announcement” in the coming days. In the process, the Enterprise Operating System overtook Litecoin (LTC) as the fifth-largest cryptocurrency by market cap.
EOS Price Update
The EOS/USD exchange rate peaked at $8.21 on Bitfinex, its highest level in around ten months. As of 9:24 a.m. ET, the cryptocurrency pivoted sharply lower to trade at $7.72, where it was down 4%. Compared with 24 hours ago, EOS is still up more than 10%.
Not unsurprisingly, EOS has entered overbought territory following the latest rally. The relative strength index (RSI) has pierced above 70, an unsustainable level. A high RSI makes new positions unattractive in the short term.
EOS has gained 23% over the past week and a whopping 63% in the past month. The price has virtually tripled since the start of 2019.
In terms of price levels, the EOS bandwagon is likely just getting started. Since breaching $6.00 nearly two weeks ago, the market has been overwhelmingly bullish. That level now provides firm support for the EOS price as the bulls target $10.00.
At current values, the Enterprise Operating System is capitalized at $7.2 billion, overtaking Litecoin as the fifth largest cryptocurrency. Litecoin was virtually unchanged on Tuesday.
The overall cryptocurrency market is worth $270 billion. Most of the top coins were trading mixed-to-lower following a strong start to the week.
Big Announcement Coming?
EOS’ rally took on a life of its own Tuesday after Block.one, the company behind the cryptocurrency network, teased a major announcement at its forthcoming #B1June event in Washington, D.C. While the details of the announcement aren’t known, rumors escalated after Block.one purchased $20 million worth of RAM on the EOS network.
The fact that https://t.co/a48NDAuSrp 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.
I will use a trailing stop to manage risk though
— Jacob Canfield (@JacobCanfield) 27 mai 2019
Regarding the B1 event, Block.one is expected to deliver a revised roadmap and new product release schedule. The company is also said to be working on a decentralized application for social media.
The EOS protocol supplies developers with computational power so that they can build decentralized applications on top of the network. It was launched in mid-2018 following a controversial but highly lucrative crowdsale that raised $4 billion. According to Cardano founder Charles Hoskinson, the EOS crowdsale will attract unwanted attention from the U.S. Securities and Exchange Commission (SEC).
Last year, Hoskinson said the EOS initial coin offering was “egregious” and showed an “utter lack of respect” for investors. He added that the SEC “needed” to investigate the matter further. Read more: Cardano Founder Charles Hoskinson Warns of Regulatory Action Against EOS.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Chart via TradingView.