EOS price marches to $23 after Block.one announced new crypto exchange

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  • EOS price may log the largest one-day gain since July 3, 2017.
  • No signs of an extreme overbought condition on the daily or weekly Relative Strength Indexes (RSI).
  • Block.one announces plans to launch a cryptocurrency exchange subsidiary.

EOS price is not overbought, despite three of the last seven days registering gains of at least 30%. The technical backdrop should not inhibit EOS price from continuing the rally and testing the remaining Fibonacci retracement levels of the 2018-2020 decline that reached 90%.

Block.one subsidiary will be advised by leading investors in finance

Block.one, a blockchain software company, announced the launch of a newly formed subsidiary, Bullish Global. It will be a completely independent entity and focused exclusively on the release of Bullish, a new cryptocurrency exchange that “will leverage blockchain technology and a new market architecture to revolutionize the high-performance trading landscape,” according to Block.one CEO Brendan Blumer. 

The exchange will be transparent and offer improved access to cryptocurrency strategies.

Transparently automating expensive third-party functions and turning them into yield-generating portfolio management tools to offer institutions and individuals better and safer access to the latest cryptocurrency investment strategies.

Bullish Global is well capitalized with over $10 billion in cash and digital assets, including 164,000 BTC, 20 million EOS and $300 million from a group of prominent investors such as Peter Thiel, hedge fund manager Louis Bacon, Alan Howard and Mike Novogratz. 

Thiel said he was “happy to join Bullish as an investor and advisor” as the cryptocurrency exchange increases institutional adoption through blockchain-based market structures.

It is predicted that Bullish will be well ahead of the competition thanks to its size and tremendous scale.

EOS price waits for no one this year

EOS price has been on a tremendous rally since the end of January, rising over 400% in that time. At the time of writing EOS price showed the largest daily gain since 2017 of 44%, the largest two-day gain since 2017 of over 80% and a two-week gain of 96%.

The daily and weekly RSI readings are above the popular 70 levels. Still, they are not at previous extreme levels that accompanied significant price highs, suggesting that the potential for further upside is high.

Influential resistance levels are concentrated at the 61.8% and 78.6% Fibonacci retracement levels of the 2018-2020 decline, of $14.77 and $18.40, respectively. If a blow-off type of move materializes, speculators should anticipate a test of the 2018 all-time high at $23.02.

EOS/USD weekly chart

EOS/USD weekly chart

On the other side of the fence, EOS price could sell the earlier gains of the day, tipping off speculators to a local top. A corrective process will observe resistance at the 38.2% retracement of the rally beginning the end of December at $9.39. Still, formidable resistance will be apparent at the near intersection of the May 2019 high at $8.65 and the 50% retracement at $7.96.

Markets tend to sell the news, so today’s close will be important in defining EOS price direction for the short term.

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