EOS/USD made yet another stunning bullish move on Wednesday, after days of consolidation which followed its rallies in March. The 30% surge helped EOS/USD test above the 61% Fibonacci retracement level of $7.4, as well as the lower band of the daily Ichimoku cloud.
With this, EOS became the leader of an otherwise partially bullish cryptocurrency market.
What is Behind EOS/USD Surge?
The reason behind this specific surge in EOS/USD is not clear as of yet. However, EOSIO has been making exciting announcements in the past few weeks.
On April 6th, first feature-complete pre-release of EOSIO, Dawn 3.0 was announced, presenting scalability and Inter-Blockchain Communication features as some of its key elements of its blockchain infrastructure.
On the same day, Block.one, the developer of the EOSIO software, signed a $200m joint venture partnership to accelerate EOSIO’s ecosystem development.
This was the fourth injection of capital through Block.one’s EOS VC initiative which now totals 600m USD.
Michael Cao, the founder of a blockchain mining facility in the United States and prominent investor in key blockchain infrastructure throughout the world is one of the other partners, who is convinced that the speed, scalability, and usability of the EOSIO open-source platform will enable rapid and radical innovations.
EOS/USD Price Action
Taking a look at the daily chart, EOS/USD price is currently supported at $5.7 and $4.3 respectively. It aims to reach the 50% Fibonacci resistance of $9.6. A break above the daily Ichimoku cloud could open doors to further gains towards $11.71.
With a market cap of just over $6b, EOS is the 6th largest cryptocurrency trailing behind Bitcoin, Ethereum, Ripple, Bitcoin Cash, and Litecoin.
As the 4th point of the IDDA technique, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio.
*This article was originally published here