EOS price takes a 20% nosedive after Block.one CTO, Dan Larimer, resigns

EOS experienced a gruesome weekend as the price tanked by more than 20% amid the news that Dan Larimer had resigned as the Chief Technology Officer (CTO) of Block.one. Larimer wrote on Voice.com that he had enjoyed his four-years at Block.one but “all good things must come to an end.”

Dan Larimer to continue building censorship-resistant technologies

The now-former CTO said that he was proud of what the EOSIO software had achieved so far. His next step in life is to continue developing voluntary solutions that exemplify “liberty, property, and justice for all.” However, he acknowledged that his future is not cut out now, but he is “leaning toward building more censorship-resistant technologies.”

EOS price rejected at a double-top pattern

EOS plunged massively due to a combination of macro and technical perspectives. The news that Larimer had resigned was not received well by the community. Some members of the crypto community faulted Larimer for starting a series of failed projects.

The CTO was branded a “professional con artist’ following failed projects such as Bitshares, Steem, and now EOS, which is said to be on its knees. It was clear, especially on Reddit, that the crypto community was not fond of Larimer’s projects that fail to see the light of day while he continues to move on, having made millions of dollars.

On the other hand, the daily chart highlights the formation of a double-top pattern. This is a solid bearish pattern in technical analysis. It represents a supply area that has been tested by an asset twice. Rejection at the pattern is usually drastic and extensive, explaining the more than 20% loss over the last 24 hours.

At the time of writing, EOS is trading at $2.94 after falling massively from highs around $3.9. The price appears to hold above the 100 Simple Moving Average, but it’s uncertain for how long this immediate support may hold. The bearish leg is likely to extend to the 200-day SMA, but if push comes to shove, EOS could dive to $2.6 and perhaps retest the anchor at $2.2.

EOS/USD daily chart

On the flip side, if support at $2.8 (200 SMA) holds the ground, the bearish outlook toward $2.6 and $2.2 will be discredited. EOS Bulls are likely to rally up, taking advantage of the low price and creating enough volume to support a recovery back to price levels at $3.9.