Token to Flounder As ENF Sues Block.one
Any bullish EOS price predictions are under threat after the bullish move of the day faltered at the 1.416 resistance mark. This has left some market watchers wondering if there is still life in the EOS token. The descent into the Antipodes was prompted by remarks made by the EOS CEO Yves La Rose, in which he accused the project’s backer Block.one as being behind the project’s poor performance.
Recall that EOS co-founder Dan Larimer resigned from his position as Chief Technology Officer of Block.one. During his time, he had overseen a $4 billion initial coin offering for EOS as the project sought to topple Ethereum as the go-to smart contract platform. However, the EOS price dropped steeply after his resignation. Development on the EOS blockchain stalled as talent left the company.
The wounds appear to have been reopened, as the EOS Community has sued Block.one seeking $4.1 billion in damages. The EOS Network Foundation (ENF) wants to use the funds to initiate a project turnaround after several failed talks with Block.one. The lawsuit is part of the measures the ENF is taking to revamp the network. Scheduled payments of $250 million worth of EOS tokens have been blocked.
Where do these development leave the EOS token? Here is the short-term EOS price prediction.
EOS Price Prediction
The 4-hour chart shows the EOS/USDT pair trading in a range with 1.416 acting as the ceiling and 1.260 forming the floor. The bulls need to break the 1.416 ceiling (15 May high) to open the door towards 1.573 (10 May low). Additional targets to the north lie at 1.664 (10 May low) and at 1.816, where the 10 May high is located.
On the other hand, if the price activity breaks down the 1.260 support (14 May low), we will see a descent towards the 12 May low at 1.115. 1.100 is the lowest price ever recorded for the EOS/USDT pair, and this was on 4 December 2021. A decline below the 1.115 support could surpass this all-time low.
EOS/USDT: Daily Chart
