EOS price analysis: EOS/USD spikes above $9.00, gaining over 15% amid altruistic intentions of the Block Producer App Coalition
|- EOS is overbought, vulnerable to a short-term correction.
- Large EOS block producer promises to reinvest its profits back to the system development.
EOS/USD is one of the market leaders. The coin has gained 15% on a daily basis amid global recovery on the cryptocurrency markers. EOS is the 5th biggest coin with market value $8.2B and average daily trading volume $1.2B. The figure has doubled since Sunday and even spiked to $2.5B at some point during Asian hours. The short-term volatility subsided, but it is still elevated as the price demonstrates strong upside momentum. EOS/USD is currently changing hands at $9.22, off the intraday high at $9.44.
The market seems to have shrugged off the issues related to EOS mainnet start and a fight between Block Producers and EOS Core Arbitration Forum. High trading volumes and the price recovery show that both investors and block producers are confident with the project. Thus, the Block Producer App Coalition (BPAC) that unites EOS app developers around the globe announced the decision to reinvest the profits received from its operations into EOS ecosystem. BPAC is an elected block producer and the only member of the system committed to supporting the ecosystem development with 100% of its net proceeds.
"The top EOS block producers will generate significant profits, and we believe those profits should go back into the community," commented Reeve Collins, the founding member of BPAC and CEO of BLOCKv.
EOS technical picture
Looking technically, EOS/USD smashed $8.00 and $9.00 handles, which makes the picture look positive. However, the overbought condition might lead to a short-term correction with the local aim at $9.06, which is 50-SMA (15-min chart). Once it is broken, the downside may be extended towards $8.60 and $8.3 (100 and 200-SMA respectively). On the upside, keep an eye on $10.00 and $10.23 (200-DMA).
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