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

  • Dan Larimer resigns from Block.one to continue developing censorship-resistant crypto solutions.
  • The crypto community is unhappy with Larimer for starting a series of failed projects while making away with millions of dollars.
  • EOS breakdown remains unstoppable after diving from $3.9 to the short-term support at $2.9.

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 price chart

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.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Dogecoin: DOGE on the verge of a 75% lift-off

Dogecoin price breaks out of a bull flag pattern after surging 20%. DOGE could surge 75% to $0.095 if it bounces from the 50% Fibonacci retracement level at $0.055. A bearish outcome could evolve if the price re-enters the “flag” and starts consolidation.

More Dogecoin News

Bitcoin price ready for another upswing as the Fed publishes new preconditions for a digital dollar

The Fed will be looking for stakeholder interest and buy-in to support the launch of a CBDC. The US is still a long way to develop a digital dollar because many structures are not yet in place.

More Bitcoin news

Solana: SOL could take a breather and pullback 30% after a 600% bull rally

SOL price has been on an uptrend since Jan 22 with only minor corrections. SOL was surprisingly unbothered during the market crash on Feb 22 and 23, as it dropped by a mere 13%.

More cryptocurrencies news

Ethereum: ETH building overhead pressure threatens losses to $1,200

Ethereum’s recovery stalls at $1,700, opening the door to the ongoing bearish pressure. The IOMAP reveals the presence of intense selling pressure ahead of Ether.

More Ethereum news


Bitcoin Weekly Forecast: BTC journey to $100,000 might be easier than expected

This past week has been extremely beneficial for Bitcoin which jumped by 30% since Monday 8. Several positive announcements, especially Tesla purchasing $1.5 billion worth of the digital asset propelled the flagship cryptocurrency to new highs.

Read the weekly forecast