EOS Rallies More Than 50% To Reach Highest In Almost 3 Years

EOS prices surged today, climbing over 50% in a matter of hours after Block.one announced that it had created a new subsidiary, Bullish Global, with more than $10 billion in funding.

The latest news was announced after Block.one provided Bullish Global with both cash and digital assets. Going forward, the subsidiary plans to work toward the launch of cryptocurrency exchange Bullish later in 2021.

EOS, which serves as the native token of a platform for decentralized applications (DApps), reached $14.11 early this afternoon, according to CoinDesk data.

At this point, it was up roughly 56.6% since the start of the day, and was trading at its highest since June 2018, additional CoinDesk figures reveal.

Interestingly enough, the digital asset started its start ascent around 8:30 a.m. EDT, which was shortly after the announcement was made at 8 a.m. EDT.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

While today’s rally was impressive, multiple analysts claimed that EOS was well-positioned for gains.

Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, spoke to this situation.

“The announcement is resulting in speculation on the price, but EOS had been in an uptrend for a while now, notably since the start of April,” he noted.

“It initially benefited from market optimism towards older digital assets and then respected the previous resistance-turned-support level around $8.5,” said DiPasquale.

“It bounced off this level in the start of May and yesterday, during the major drop. Given that there was already decent market interest in EOS, it jumped significantly on the announcement,” he stated.

Tim Enneking, managing director of Digital Capital Management, also weighed in, speaking to the eagerness of investors.

“Given any positive substantive news at all, virtually any token will immediately skyrocket in this environment,” since buyers are so receptive.

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.