Tuesday was a choppy day for the top 10 cryptos. Among them, Binance Coin and Tron’s TRX suffered the biggest losses of the day. Binance declined by 3.48%, while Tron dropped 2.68%.
On the other hand, the leading green areas were Stellar’s Lumen and EOS. EOS/USD was the day’s growth leader. The coin gained over 11% in the last 24 hours and touched $ 4.16 before retreating to $ 4.08 at the time of my writing. The fifth largest digital asset with a market capitalization of $ 3.6 billion and an average daily trading volume of $ 1 billion grew by nearly 75% over the past three months. However, the coin is still 33% lower than the previous year.
Dan Larimer shot EOS/USD straight up
The founder of EOS Dan Larimer shared a veiled pre-announced message in the project’s Telegtam chat. No details were given about the nature of the message, but the excitement of the community quickly spread across social media.
Block.One, the company that owns the EOS code and released it to the community, also made a pre-announcement of an event in Washington on June 1, potentially hinting at the location of the message. There are no major conferences or events for that date, which suggests that EOS can make an independent message, considered to be the largest since the beginning of EOSIO, at least according to Larimer’s words.
At the same time yesterday Weiss Crypto Ratings published its report on the emerging trends of the crypto market. In addition to BTC and XRP, EOS also received rating A as a leading crypto currency that id challenging Ethereum in an attempt to become the “backbone of the new Internet”.
EOS/USD on the verge of another breakout
On the daily chart, the EOS/USD pair jumped above DMA 200 for the first time since February 24. This development can be seen as a positive signal for the coin. In support, we also have an upside slope of the RSI indicator on daily chart.
Under this scenario, the next target of the bulls would be the high of February at $ 4.53. A clear breakthrough above it should send the price to test the psychological level of $ 5.00. If this resistance will be overcome, bullish pressure can be extended to SMA 50 at $ 6,395 (on weekly chart). The last time EOS traded above weekly SMA 50 was in August last year.
On the downside, the first support is seen around $ 4.00, followed by $ 3.80 (DMA 200). A clear break below that zone should lead to a downside correction and will return the price back to the lower boundary of the recent range of $ 3.20 (March low).
Author: Silviya Velcheva
* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.