beincrypto.com
EigenLayer (EIGEN) has experienced a sharp increase in price today following a semi-bearish week. The altcoin, which launched amidst much 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.
EigenLayer Could See Increased Interest
Since its launch, participation from EIGEN holders has remained relatively weak. At the time of writing, around 8,000 addresses are active on the network, a significant drop from the 164,000 addresses seen on October 1.
This decline 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.
The anticipated price surge may reverse the downward trend in network activity. As EIGEN’s price rises, more holders could be encouraged to re-engage, leading to a potential increase in active addresses. This would further solidify the token’s position in the market and strengthen investor confidence.
Read More: What Is EigenLayer?
The macro momentum for EIGEN is driven by the upcoming 11.22 million EIGEN token unlock. These tokens are roughly worth $37.81 million, representing 6.01% of the circulating supply.
Token unlocks typically result in a price drop due to the increase in available supply. However, in the case of EIGEN, the current bullish sentiment suggests that investors are buying into the rally, likely intending to sell at the highest point before the unlock.
This strategy could contribute to the continued upward momentum, but it also introduces the risk of a sharp sell-off once the unlock occurs. Investors are closely watching the market, and the timing of their trades will likely influence the token’s price in the short term. As a result, EIGEN’s price movements remain volatile.
EIGEN Price Prediction: Eyes on the Highs
EIGEN has seen a 23% increase in the last 24 hours, with the price currently trading at $3.92. The altcoin is approaching a crucial resistance level at $4.15. Breaching this level would pave the way for further gains, with a potential rise to $4.24, marking a new ATH.
If the bullish momentum continues, EIGEN could easily surpass the current ATH of $4.24 and head towards $4.94. This is the intra-day high of the listing day, and reaching it will mark a 25% increase in price.
However, the $4.15 resistance level must be flipped into support. This would signal a strong continuation of the uptrend and could attract even more buyers.
Read More: How to Participate in an EigenLayer Airdrop: A Step-by-Step Guide
On the other hand, if investors choose to sell before EIGEN breaches $4.15, the price may decline. A drop to $3.75 could wipe out most of the recent gains, invalidating the bullish outlook and setting the stage for a potential downtrend.