EigenCloud’s (formerly EigenLayer) native token, EIGEN, is coiling like a viper on the charts. A $1.6 million token unlock looms, promising either explosive upside or a venomous bite.
Summary
- EIGEN trades near $1.34, down 8% daily but up 24% monthly.
- A $1.6M token unlock on July 29 may impact short-term price direction.
- Technicals show a squeeze forming as support is tested and volume dips.
EigenCloud (EIGEN) weathers a slight downturn. Currently priced at $1.34, the token dipped 8% in the last 24 hours. Zooming out, EIGEN reflects a 24% surge over the past month, offering a silver lining for HODLers. Though momentum persists, the climb to its December 2024 peak of $5.65 remains a challenge, with EIGEN still trailing 76% behind. Is this a temporary setback or a sign of things to come?
Spot traders are retreating, and risk aversion is gripping the crypto market. Trading volumes have shrunk by 4.5% to roughly $89.5 million, signaling waning enthusiasm. Coinglass data reveals a significant pullback in the derivatives market, with open interest plummeting over 10% to $73.2 million and total derivatives volume dipping slightly to $401 million. Are traders bracing for impact as a critical support level faces its ultimate challenge?
Eigentoken unlock to pressure support
Brace yourselves, EIGEN holders! July 29th looms, and with it, a wave of 1.3 million tokens – a cool $1.86 million – set to flood the market, according to Token Unlocks. While this unlock event isn’t a tidal wave against EIGEN’s $2.3 billion valuation, it’s more like a well-timed ripple hitting when the price is already teetering precariously on a $1.25-$1.30 knife-edge. Will it hold, or will the unlock push it over the brink? All eyes on July 29th.
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An impending token unlock casts a shadow, potentially shaking the resolve of current holders with a surge in supply. Declining open interest and trading volume whisper a warning: navigate the approaching unlock with extreme caution.
Updates expand EigenCloud’s reach
Following two pivotal protocol updates, EigenCloud has unleashed a game-changer: its Redistribution mechanism. Deployed to the mainnet on July 22nd, this long-awaited feature breathes new life into slashed Actively Validated Services funds, diverting them from oblivion and repurposing them for future innovation. This unlocks unprecedented flexibility in AVS design, empowering teams to construct groundbreaking economic models previously deemed impossible.
July 24th marked a leap forward: the unveiling of Multi-Chain Verification, debuting on Base. Forget fragmented security – AVSs now harness Ethereum-grade protection, validating states across the burgeoning Layer-2 universe. EigenCloud’s vision of Ethereum’s shared security is solidifying, powered by this pivotal enhancement.
Eigen technical analysis
EIGEN’s daily chart paints a tense standoff. Trapped between $1.25 and $1.49, the Bollinger Bands are squeezing tight, hinting at a coiled spring ready to unleash. The market’s mood? Ambivalent. Indicators are giving mixed signals, a tug-of-war between bulls and bears. Momentum leans slightly south, and the MACD just flashed a bearish warning, dipping below its signal line. But the RSI, hovering at a razor-thin 49.9, suggests a market holding its breath, balanced on the edge of a decision. Will it break free, or remain caged?
EIGEN daily chart. Credit: crypto.news
Williams %R and Stoch RSI are whispering “oversold,” but they’re not screaming it. This cautious oversold signal, paired with battling moving averages, paints a picture of market indecision, not a clear trend shift.
Beneath the surface of long-term optimism, short-term currents suggest a shift. While 30-, 50-, and 100-day averages paint a picture of steady, if gentle, growth, the immediate 10- and 20-day EMAs and SMAs reveal a subtle struggle: sellers are gaining ground, injecting a dose of uncertainty into the market’s overall trajectory.
Should the $1.25 level crumble, brace for a potential dip towards the $1.10 support zone. Conversely, a decisive surge beyond $1.50 could ignite a rally, paving the way towards $1.75. Currently, the market seems to be holding its breath, with traders sidelined, anticipating the aftermath of the unlock before making their next move.
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