5.4 C
Manchester
December 11, 2024
BTC Hunts
Image default
Bitcoin

Is EIGEN Going For Another Rally Or Drop?

The post Is EIGEN Going For Another Rally Or Drop? appeared first on Coinpedia Fintech News

One of the famous cryptocurrency Eigen Layer, is gaining attention in the crypto market. It is one of the few cryptos where 99% of the investors are in profit currently. Also a mysterious crypto whale bought $7.25 million worth of EIGEN and forced the community to think if it is just the start of its rally. This is surprising as the token price is showing some instability. Let’s analyse what is happening in the market.

Price Swings and Technical Analysis

EIGEN’s price movements have been exciting lately. The token is down about 8.69% from its all-time high of $5.06, achieved just two days ago. Yet, trading volume surged by 41.15%, reaching $290.06 million. Investors seem to be watching closely. Interestingly, 99% of holders remain in profit, with only 1% at break-even. EIGEN’s price dipped by 1% earlier, hitting $4.44 before bouncing back slightly to $4.60, up 0.71% for the day. Despite this fluctuation, the whale’s activity signals confidence in the token’s potential. Are they seeing something the rest of us aren’t?

Source : IntoTheBlock

On the technical side, things get even more intriguing. Since November 21, EIGEN has been moving in an upward parallel channel. This is often a sign of bullish momentum but it is not as smooth as it seems. EIGEN recently hit an ATH and the price received rejection causing it to fall to the channel’s median for support.

eigen price chart
Source : Tradingview

The 4-hour chart shows that the 20-day moving average (MA20) is currently above the price. This suggests there’s no immediate support if the token slips further. A key level to watch is $4.02—breaking below this could trigger panic selling. Meanwhile, the Relative Strength Index (RSI) sits at 55.11, which means the market is neither oversold nor overbought. It’s in a wait-and-watch phase.

EIGEN Community Buzz and Market Impact

The community sentiment is overwhelmingly bullish, with 79% of CoinMarketCap voters expecting EIGEN to rise. But there’s a twist—Justin Sun, the founder of Tron, recently sold 322,119 EIGEN tokens worth $1.44 million. He’s been offloading other assets too, stirring some market concerns. Futures open interest has also dipped slightly by 0.2%, showing the rally might be cooling off.

Source : Coinglass

On the brighter side, Binance has shown strong confidence in EIGEN. Earlier this year, it added the token to its loanable assets and VIP loans. That’s a big deal for institutional investors.

What to Expect

So, what’s next for EIGEN? The token’s technical setup suggests caution. If prices continue to hold within the upward channel, we could see another breakout attempt. But if it slips below $4.02, the risk of a deeper correction grows.

The whale’s recent purchases could be a sign of long-term confidence, even as short-term volatility persists. Community sentiment remains strong, but Justin Sun’s moves have added uncertainty. For now, all eyes are on whether EIGEN can reclaim its ATH—or if the market will see another dip first.

What’s your take? Will the whales and bulls push EIGEN higher, or will the bears take control?

Related posts

Binance Coin Awaits a Trigger, Is the BNB Price Ready For a 15% Jump?

David Bradley

Filecoin Displaying Bullish Possibilities, Though $10 Target May Remain Distinct

David Bradley

Bitcoin Bullish Continuation Unfolding Perfectly: While Shorts Pile Up at $77,000—Will The BTC Price Make It to $80,000?

David Bradley