The EOS price is surging after reports emerged that its parent company was considering starting its own cryptocurrency exchange. EOS surged by almost 50% to an all-time high of $13.70. That brought its market cap to more than $13 billion and propelled it to the top 20 of the biggest digital currencies in the world.
EOS news today
Block.one is a leading American blockchain company that made history in 2017 when it launched the biggest initial coin offering (ICO) on record. The company raised more than $4.4 billion from investors. But it then paid $25 million to the Securities and Exchange Commission (SEC) for misleading investors. EOS is the native currency for the so-called EOSIO Blockchain technology that helps people build decentralized applications.
The EOS price is surging after it emerged that Block.one will pump about $10 billion to start a crypto exchange known as Bullish. Unlike other popular exchanges like Coinbase and Binance, Bullish will be a decentralized exchange that will use a digital ledger to verify payments. It will also take on other decentralized exchanges like Uniswap and SushiSwap.
Why EOS price rose
Therefore, the EOS price is possibly surging because it will likely be the native currency for the network. In fact, other popular exchanges like Binance, Huobi, and Crypto.com have launched their native digital coins. Binance Coin is now the third-biggest cryptocurrency in the world after Bitcoin and Ethereum.
The firm will raise cash from existing investors like Peter Thiel and Founders Fund to launch the venture. The announcement came on the same day that Coinbase is expected to report its first-quarter earnings. Analysts expect that the company will report strong revenue, helped by the rising crypto prices and high volumes.
The company’s shares have gone nowhere since its IPO and are currently trading at $294, giving it a market cap that of $58 billion. At its peak, Coinbase was valued at about $100 billion.
Coinbase stock price chart
Still, Block.one faces a tough road ahead. For one, it faces strong competition from existing exchanges like Binance, Coinbase, Huobi, Kraken, and OKEx, among others.
EOS price technical forecast
The daily chart shows that the EOS price had a parabolic rally to an all-time high. By so doing, the currency managed to move above the 25-day and 50-day EMA and the previous all-time high of $13.30. However, the price has found some resistance at the ascending trendline that connects the highest points on February 13 and May 7.
In my view, the price will possibly retreat as some bulls start taking profit. This is known as fading the news. This could see it drop to Monday’s low of $8.20. However, any move above the upper trendline will be a signal that bulls have prevailed and that the price will rise to $15.