Today, we’re taking a look at EOS, one of the only cryptocurrencies in the top 10 that saw solid gains in April. But after reaching an all-time high price of nearly $23 end of April, its bullish momentum seems to have cooled down.
First, let's talk about what was behind the gains, and then see what could be next.
Beginning of April, Block.one, the developer behind EOS cryptocurrency, announced the prerelease of EOSIO’s Dawn 3.0 representing a major milestone. Block.one also signed a $200m joint venture partnership with blockchain veterans Michael Cao and Winnie Liu to accelerate EOSIO’s ecosystem development.
Other positive developments included eToro's recent decision to offer trading of the digital currency. But a bigger reason to EOS’s popularity could be the confidence the market participants and big players have in Dan Larimer, Block.one’s CTO and the visionary programer of EOS who also developed BitShares and Steem.
Regardless, over the past few days, EOS has pulled back from its all-time-high levels and has been trapped in a triangle chart pattern, supported by the 38% Fibonacci retracement level of $15.88. Considering the strong uptrend in the past month, this consolidation is not surprising, and we could even see a pullback towards the 50% Fibonacci level of $13.63, because the bulls find their momentum again to push the price higher.
For medium-term strategies, we’re in a wait-and-see mode to see which direction the price will break out of the triangle. A break above the triangle could open doors to new highs above $23 and $27.
EOS is currently the 5th largest cryptocurrency according to coinmarketcap, trailing behind Bitcoin Cash and Ripple.
*This article was originally published here.