Donald Trump's cryptocurrency company WLFI spends $3 million to acquire EOS
WLFI's $3 million acquisition of EOS triggered a 9% price increase, breaking through key resistance levels and stimulating bullish sentiment as EOS rebranded to Vaulta.
As brand reshaping and token swaps drive market momentum, EOS aims for a price target above $1, but caution is advised as the gains depend on the market continuing to strengthen.
On May 16, after World Liberty Financial (WLFI), a company associated with U.S. President Donald Trump, invested nearly $3 million in EOS, the EOS price surged over 9%. This move reignited interest in EOS amid broader market consolidation and raised questions about the sustainability of its upward momentum. Meanwhile, Trump-backed World Liberty Financial (WLFI) is ignoring scrutiny from U.S. lawmakers, raising concerns about politically related cryptocurrency projects.
The $3 million acquisition sparked market momentum
On-chain data shows that WLFI purchased approximately 3.636 million EOS tokens for 2.996 million USDT, at an average price of $0.824. Before the purchase, the trading price of the token was around $0.77, peaking at $0.86 before slightly retreating to $0.85. This price movement marks a 9.39% increase within 24 hours and helped EOS break through key resistance levels between $0.80 and $0.84.
The timing of this purchase was just right, allowing EOS to perform well while the overall cryptocurrency market capitalization lingered around $3.27 trillion, after a slight pullback from recent highs.
From a technical perspective, does EOS welcome new opportunities?
Bitcoinsensus emphasized the bullish signals for EOS, as the company bought 3.64 million EOS at an average price of $0.824, rekindling interest in the token's technical aspects. On the weekly chart, EOS has been forming a bearish expanding wedge since June 2022, which typically indicates a bullish accumulation pattern.
According to analysts, the price has repeatedly fallen to attract more buyers due to weak momentum with each rebound. Now, with the shift in market sentiment, the next key upward targets are $1.30 and $1.95.
This rebound coincides with EOS's plan to rebrand to Vaulta (a Web3 banking network). EOS tokens are expected to be exchanged at a 1:1 ratio for a new token called $A by the end of May. The exchange began on May 14 and is supported by Crypto.com, which has been partnering with Trump Media Tech Group (DJT). This rebranding and ecosystem expansion seems to be part of a larger strategy to reposition EOS as a player in decentralized finance infrastructure.