EOS (EOS) soared on Friday, May 16, as the President Trump-backed World Liberty Financial invested approximately $3 million in the cryptocurrency token.
The digital asset’s May 15 value and press time price indicate that the acquisition may have strongly impacted EOS. On Thursday morning, the token was changing hands at $0.77, rose to $0.79 by midnight, and rallied to a Friday morning high of $0.86.
In the night between Thursday and Friday, WLFI spent 2.996 million USDT to buy 3.636 million EOS. On-chain data reveals that the average purchase price was $0.824.
By press time on May 16, EOS had slightly corrected and was trading at $0.85 after a total 24-hour rally of 9.39%.
The investment in EOS enabled the token to enjoy a breakout when the whole cryptocurrency market was consolidating toward $3.27 trillion following a shallow correction it entered after hitting a total valuation of $3.34 trillion.
Simultaneously, the purchase improved sentiment toward EOS while enabling it to soar past its previous resistance in the $0.80 to $0.84 range and toward its next important resistance level near $0.90.
Why investors should stay cautious about EOS despite Trump backing
Despite the positivity, the buying pressure failed to help the cryptocurrency reach its May 10 high of $0.98.
Furthermore, investors should remain wary. EOS’ rally has likely been driven primarily by the WLFI purchase, and, unless the broader market regains the uptrend, the May 16 gains could swiftly evaporate.
However, should the token remain above its previous resistance at approximately $0.84 and turn the zone into support, the odds of a continued rally toward $1 would be increased.
WLFI invests in EOS amid a rebrand into Vaulta
The timing of the World Liberty Financial trade is also interesting as EOS is changing into a Web3 Banking network, Vaulta. The token will change at a 1:1 ratio into A by the end of May.
The swap began on May 14 and will be supported by Crypto.com. In March, Crypto.com began developing a comprehensive partnership with Trump Media & Technology Group (NASDAQ: DJT), another company associated with President Donald Trump.
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