EigenLayer (EIGEN) has experienced a sharp increase in price today, rising by 23% after a week marked by semi-bearish trends. The altcoin, which launched amidst significant hype and controversy, is now riding a wave of renewed interest.
With the momentum building, EIGEN is eyeing the possibility of setting a new all-time high (ATH). This rally has sparked excitement among traders and investors, who are keen to see whether the altcoin can sustain its gains.
Since its launch, participation from EIGEN holders has been relatively weak. Currently, around 8,000 addresses are active on the network, a decline from the 164,000 addresses seen on October 1. This decrease in activity highlights the challenges the token has faced in maintaining strong user engagement.
However, the recent price rise could potentially reignite interest among holders and boost network participation. As EIGEN’s price rises, more holders may be encouraged to re-engage, leading to a potential increase in active addresses, thereby solidifying the token’s market position and strengthening investor confidence.
The macro momentum for EIGEN is driven by the upcoming 11.22 million EIGEN token unlock. These tokens are valued at approximately $37.81 million, representing 6.01% of the circulating supply.
Typically, token unlocks result in a price drop due to increased supply. However, the current bullish sentiment suggests that investors are buying into the rally, likely intending to sell before the unlock. This strategy could sustain upward momentum but poses a risk of a sharp sell-off post-unlock.
EIGEN has seen a 23% increase in the last 24 hours, with the price trading at $3.92. The altcoin is nearing a crucial resistance level at $4.15. Breaching this level could lead to further gains, potentially reaching $4.24, marking a new ATH.
If the bullish momentum continues, EIGEN could surpass the current ATH of $4.24 and target $4.94, a significant intra-day high. However, the $4.15 resistance level must be flipped into support to signal a strong continuation of the uptrend.
Conversely, if investors sell before EIGEN breaches $4.15, the price may decline. A drop to $3.75 could erase most recent gains, invalidating the bullish outlook and leading to a potential downtrend.
