Whale Loses $5.89M on Eigenlayer (EIGEN) After Price Drops 64% in Two Months
- Whales $3.18M EIGEN deposit raises concerns about market volatility.
- EIGEN struggles with significant selling pressure, dropping 16.41% in 7 days.
- Key support at $1.60, but a breakout above $2.00 could signal a trend reversal.
A significant market move has caught investors attention as a whale recently deposited 2 million Eigenlayer (EIGEN) tokens, worth $3.18 million, into Binance. On-chain data from Lookonchain reveals that this transaction follows a previous withdrawal of the same amount two months ago, when the token was priced at $4.53.
The whale initially held EIGEN valued at $9.07 million, but the assets decline to $1.59 led to a $5.89 million loss. This highlights the tokens price volatility and raises concerns about investor sentiment.
Eigenlayer Faces Strong Downtrend as Selling Pressure Intensifies
The broader market trend for Eigenlayer remains bearish, with the token currently trading at $1.61. Over the past 24 hours, its price has dropped by 8.06%, while the past seven days have seen a 16.41% decline. The cryptocurrencys market cap stands at approximately $377.9 million, with a circulating supply of 230 million tokens.
Market volatility is evident in liquidation trends, with significant long liquidations occurring during key price fluctuations. The highest liquidation spikes were recorded in late September, early December, and late January.
Source: Coinglass
Short liquidations have been less aggressive but saw notable increases in mid-December and early February. A key liquidation event occurred when Eigenlayers price neared $5.00, and further long liquidations followed after the token dropped below $2.00.
Critical Support and Resistance Levels for EIGEN
The token is hovering near a crucial support zone between $1.60 and $1.58. If this level fails, the next significant support lies near $1.50 or lower, as historical price data shows weak demand in that area.
On the upside, the first resistance level is around $2.00, a previous support level that turned into resistance. A strong breakout above the $2.50 to $3.00 range would indicate a potential trend reversal, providing relief for investors hoping for a recovery.
Technical Indicators Suggest Possible Short-Term Rebound
EIGEN/USD daily price chart, Source: Trading view
Technical indicators provide mixed signals regarding the tokens future price action. The Relative Strength Index (RSI) is at 30.83, indicating oversold conditions. This suggests the possibility of a short-term bounce. However, if selling pressure continues, the downtrend may persist.
Meanwhile, the MACD indicator remains bearish, with the MACD line at -0.028 below the signal line at -0.358. A potential bullish crossover in the coming sessions could signal a recovery, but confirmation is required before expecting a sustained uptrend.
Read more: https://www.tronweekly.com/whale-loses-5-89m-on-eigenlayer-eigen/
Text source: TronWeekly
