thecryptobasic.com
Will the ongoing bull run in EigenLayer (EIGEN), fueled by a channel breakout, result in a breakout above $5 and push the price to $6?
EigenLayer is trading at $3.7945, with an intraday pullback of 1.43%. However, the last night’s surge resulted in a 14.07% bullish engulfing candle with a 24-hour high set at $4.1419.
Will this recovery in EigenLayer lead to a new price surge beyond $5? Let’s take a quick look at its price action to find out more.
EigenLayer Price Analysis
In the 4-hour chart, the EigenLayer price trend shows a breakout rally gaining momentum. The bull run began with a sudden reversal from the $2.14 level, followed by a 5.18% surge that created a bullish engulfing candle on Nov. 21.
The trend momentum has continued to surge, challenging the long-standing resistance trendline in the 4-hour chart. With multiple rejections, the trendline had previously trapped bullish attempts at growth.
However, a massive surge of 5.61% on Sunday, Nov. 24, marked the breakout of the falling channel pattern. Over the last week, the recovery rally in EigenLayer has seen 6 out of 7 bullish candles.
In the 4-hour chart, a higher price rejection formed an evening star pattern, and the price is now consolidating slightly above the $3.60 support level. The sudden increase in overhead supply comes from a long-standing supply zone extending from $4.07 to $4.14.
Eigenlayer Chances of a Bull Run
For the bullish trend to continue, the breakout rally must sustain a closing above $4.15 on the 4-hour chart. The increased bullish momentum has resulted in a golden crossover, with the 100 and 200 EMAs approaching a bullish crossover.
Furthermore, the 4-hour RSI has entered the overbought zone, indicating a minor pullback or consolidation before buyers regain control. However, both the momentum indicator and the moving averages remain optimistic about the future price trend of EigenLayer.
According to Fibonacci levels, the breakout rally could target the next price levels at $4.96 and $6.23. With the broader market recovery, these targets will likely be reached in December. On the downside, the crucial support levels stand at $3.60, followed by $3.40.