- Strong demand underpinning EIGEN’s rally promised further gains.
- If a bearish divergence occurs, there is a possibility of a short-term price decline.
EigenLayer (EIGEN) was trading just below $4 at press time. It jumped 11.8% in two hours, from $3.71 a few hours ago to $4.13.
Since Monday’s low of $3.28, the EigenLayer token is up 28.58% at the time of writing. This short-term rally also broke the $3.7 resistance level from last week.
Extension levels provide traders with optimistic targets.
Source: EIGEN/USDT on TradingView
From October 3 to 7, EIGEN traded between $3.255 and $3.7. It fell to $3.1 on October 6, with the bulls recovering later that day.
Volumes have remained consistently high throughout this week’s uptrend. The Money Flow Index also showed strong buying pressure, but traders should watch out for a potential bearish divergence.
The price was at the upper Bollinger Band. The width of the bands has shown high volatility over the past two days. The 20-day SMA is expected to serve as support when prices fall.
A Fibonacci extension level above $4.04 presented a short-term target for traders. This level was indicated using a higher impulse move breaking the $3.7 resistance.
Firmly optimistic belief remains
Source: Coin Analysis
Over the past three days, open interest has been trending upward along with the EIGEN price.
Realistic or not, EIGEN’s market cap in BTC terms is:
This demonstrated strong bullish sentiment and buying appetite in the futures market, even as Bitcoin (BTC) struggled to extend the $63,000 resistance zone.
Spot CVD has been flat in recent days, but the trend has started to rise in the last 24 hours. A high funding rate indicates widespread long positions.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.