EOS Surges 9.39% After World Liberty Financial Investment

World Liberty Financial (WLFI), a firm linked to former U.S. President Donald Trump, made a significant investment in the cryptocurrency EOS. The firm purchased approximately 3.636 million EOS tokens using 2.996 million USDT, at an average price of $0.824. This investment sparked a sharp price rally of over 9% for EOS on May 16, with the token reaching a high of $0.86 before correcting slightly to $0.85. This price move marked a 24-hour gain of 9.39% and helped EOS break past key resistance levels between $0.80 and $0.84.

The timing of the investment allowed EOS to outperform while the overall crypto market was hovering near $3.27 trillion in market cap, following a mild correction from recent highs. The investment by WLFI brought renewed attention to EOS amid broader market consolidation, raising questions about the sustainability of the surge. The firm is also brushing off U.S. lawmakers’ scrutiny, bringing attention to politically connected crypto projects.

Bitcoinsensus highlights a bullish setup for EOS as the firm acquired 3.64 million EOS at an average price of $0.824, triggering renewed attention to the token’s technicals. On the weekly chart, EOS has been forming a falling broadening wedge since June 2022, typically a bullish pattern that suggests accumulation. According to the analyst, the price repeatedly dipped lower to gather more buyers due to weak momentum on each bounce. Now, with sentiment turning, the next key upside targets are $1.30 and $1.95.

The rally also coincides with EOS’s ongoing rebrand into Vaulta, a Web3 banking network. The EOS token is set to be swapped at a 1:1 ratio into a new token called $A by the end of May. The swap began on May 14 and is supported by Crypto.com, which has been developing a partnership with Trump Media & Technology Group (DJT). The rebranding and ecosystem expansion appear to be part of a larger strategy to reposition EOS as a player in decentralized finance infrastructure.

Despite the positive momentum, investors are advised to stay cautious. EOS failed to retest its May 10 high of $0.98, and much of the recent surge appears to be driven by the WLFI buy. If the market doesn’t resume an uptrend, the gains could reverse quickly. Still, if EOS can hold above the $0.84 mark and establish it as a support zone, the likelihood of a continued move toward $1 increases. The coming days will be crucial as investors watch whether hype translates into lasting strength.