EigenLayer’s native token, EIGEN, has made waves since its debut, jumping nearly 22% and reaching a high of 4.94. Trading currently at approximately 3.85, the token is experiencing consolidation below the 4 mark. Major exchanges like Binance and Coinbase have expanded support for EIGEN, fueling optimism among investors.
After a spectacular initial rally, EIGEN retraced to around 3.73, reflecting typical market adjustments to overbought conditions. The consolidation phase around the 3.70-$4.00 range suggests that buyers are still active and that the market is stabilizing after the significant price movement. Key support levels are forming around 3.50, and if the price holds, it could attempt to retest the 4.50-$5.00 resistance levels.
Initial Surge: Both charts show a significant initial surge in price. EIGEN reached a high of $4.94, while HMSTR experienced a dramatic spike right after its listing.
Subsequent Correction: Following the initial peaks, both tokens faced a sharp correction. EIGEN retraced to approximately $3.73, and HMSTR also saw a significant drop in price after its peak.
Consolidation Phase: After the corrections, both tokens entered a consolidation phase. EIGEN is trading within a range around $3.70-$4.00, while HMSTR shows a similar stabilization trend post-dump.
Market Sentiment: The overall market sentiment for both tokens has been affected by the volatility seen post-listing, indicating a general pattern of high interest followed by profit-taking.
Support Levels: Each chart suggests key support levels are forming. For EIGEN, support appears around $3.50, while HMSTR's price shows a gradual adjustment toward potential support levels.
According to technical analysis based on a 5-minute timeframe, the uptrend could target the 50% Fibonacci level at $6 and the 61.80% level at $6.50 if the current bullish sentiment continues. However, it’s essential to monitor Justin Sun's activities, as he is the largest holder and has started dumping airdropped tokens, which could impact market dynamics.
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Lokesh Gupta is a seasoned financial expert with 23 years of experience in Forex, Comex, NSE, MCX, NCDEX, and cryptocurrency markets. Investors have trusted his technical analysis skills so they may negotiate market swings and make wise investment selections. Lokesh merges his deep understanding of the market with his enthusiasm for teaching in his role as Content & Research Lead, producing informative pieces that give investors a leg up. In both conventional and cryptocurrency markets, he is a reliable adviser because of his strategic direction and ability to examine intricate market movements. Dedicated to study, market analysis, and investor education, Lokesh keeps abreast of the always-changing financial scene. His accurate and well-researched observations provide traders and investors with the tools they need to thrive in ever-changing market conditions.
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