EOS has surged even further by a total of 12% over the past 24 hours, after the CEO made a major announcement to buy back some shares of EOSIO. The recent price surge caused EOS to climb back above the $8.00 level. EOS has now seen a 69% price increase over the past 30 trading days, with an even more impressive 130% increase over the past 90 trading days.
Block.One, the development company behind the EOSIO software, recently announced that it will be buying back around 10% of its own stock. This suggests that the Block.One company has confidence and a positive outlook for the future of EOS.
Block.One has been valued by Bloomberg at around $2.3 billion, with each share now costing around $1,500. This is not the first time that Block.One has done a buyback of its shares. Previously, Block.One bought back 13.8% of its stock at a value of $1,200 per share, which equals around $300 million in total.
EOS is now presently ranked in the 5th position among the top cryptocurrencies by market cap valuation. EOS currently holds a $7.33 billion market cap valuation, putting it a cool $400 million behind 4th position holder, Litecoin (LTC).
Let us continue to analyze the EOS/USD market and highlight some potential areas of support and resistance moving forward.
EOS Price Analysis
EOS/USD – MEDIUM TERM – DAILY CHART
What Has Been Going On?
Taking a look at the EOS/USD daily chart above, we can see that the recent price explosion has now allowed EOS/USD to break above the resistance at the bearish .382 Fibonacci Retracement level (drawn in red), priced at $6.93, and continue much further higher above $7.00.
The EOS/USD market then continued to climb further higher to where it is currently trading at resistance provided by a short-term 1.618 Fibonacci Extension level (drawn in purple), priced at $8.13.
What Is the Current Trend?
The recent break above the $6.93 resistance level has now rendered the market as bullish in the short term. For this bullish trend to be invalidated, we would need to see EOS/USD fall and break back beneath the support at $6.93. If EOS was to continue to fall and break beneath the $5.50 level, we could consider the short-term trend then as bearish.
Where Is the Resistance Above the Market?
If the buyers continue to increase their pressure and cause EOS/USD to climb above the current resistance at $8.13, we can expect immediate higher resistance to then be located at the bearish .5 Fibonacci Retracement level (drawn in red), priced at $8.58. This long-term bearish Fibonacci Retracement level is measured from the June 2018 high to the December 2018 low.
If the buyers continue above $8.58, further higher resistance above is then to be expected at $8.80, $8.98, and $9.00. If the bulls continue to drive EOS/USD further above $9.00, higher resistance can then be expected at $9.44, $9.95, and $10.00.
The final level of resistance to highlight above $10.00 is located at the long-term bearish .618 Fibonacci Retracement level (drawn in red), priced at $10.22.
What If the Sellers Regroup?
Alternatively, if the sellers regroup and begin to push the market lower, we can expect immediate support beneath the market to be located at $8.00 and $7.50. Beneath this, further support can be located at $7.39, $7.00, and $6.93.
If the sellers continue beneath $6.93, further support toward the downside can be found at $6.50 and $6.00.
What Are the Technical Indicators Showing?
The RSI has recently bounced from the 50 level and climbed higher into overbought conditions. This suggests that the market may need to pull back slightly so the buyers can regain their energy and push the market higher once again.
Furthermore, price action is trading above both the 100-day moving average and the 200-day moving average, a very bullish set up in the long run.
The recent announcement from Block.One to buyback 10% more of its stock speaks volumes to the confidence that the development team have for the future of EOS. If the buying pressure continues to drive EOS above $8.00, we can expect the market to continue to climb higher toward the $10.00 level.