Yesterday, Block.one, the creator of the EOS blockchain announced a huge collaboration with Google Cloud which will help developers to build new applications on EOS. The official announcement by Google stated:
Google Cloud has partnered with Block.one and will become a block producer candidate to provide infrastructure in support of the EOS network, which is built on the EOSIO blockchain protocol published by Block.one. Google Cloud’s highly provisioned, low-latency global fiber optic network provides stability, reliability, security, and extensive global infrastructure coverage for Block.one’s public blockchain efforts and development.
Furthermore, Block.one also announced the appointment of R. Martin Chavez, a veteran investor that previously worked for Goldman Sachs, to Chair Advisory Board.
Mr. Chavez transformed Wall Street’s trading business into a software business, revolutionizing the way capital moves and works. He brings to his role at Block.one in-depth technical expertise and unparalleled experience at the intersection of finance, entrepreneurship and tech.
Both news together had a significant impact on the price of EOS which exploded from $2.45 towards $2.97.
EOS Bull Rally Was Short-Lived
Despite the massive news, EOS is already trading 11% lower than its peak at $2.97. In fact, the price touched $2.59 today, which is fairly close to the price before the announcements. It seems that bulls weren’t strong enough to keep the digital asset above the 26-EMA, however, they are currently defending the 12-EMA.
This massive rejection shows that bears are still applying a lot of selling pressure and the daily downtrend could still be in play if the 12-EMA is lost.
The most critical short-term support level is also the 2.43 level defended on several occasions in the past.
On the 4-hour chart, the price is stabilizing above the 12-EMA at $2.62. Bulls need to hold this support level if they want to see a bounce towards the $2.97 high. The RSI was briefly overextended but has cooled off while trading volume continues dropping.
The most critical resistance level is the 200-SMA at $2.66, the price has failed to stay above this level several times in the past 24 hours. Bulls need to break out above this SMA.