EigenLayer (EIGEN) token has experienced a significant drop in value over the past four days, falling to its lowest level since November 3. Despite this decline, a group known as ‘7 Siblings’ has been actively buying the dip, accumulating 1.07 million EIGEN tokens valued at $2.59 million. This acquisition is notable, given that ‘7 Siblings’ are prominent crypto investors with over $106 million in their wallets.
The buying activity by ‘7 Siblings’ suggests that they expect the token’s value to eventually rebound. Additionally, the launch of Infura’s decentralized public infrastructure network on EigenLayer could be a significant catalyst for growth, as Infura is one of the largest infrastructure networks in the crypto industry.
From a technical analysis perspective, the daily chart shows that EIGEN has been in a steep downward trend, falling in the past four consecutive days. However, the formation of a double-bottom pattern suggests a potential bullish reversal, which could lead to a retest of the resistance level at $5, representing a 115% increase from the current level.
However, it’s essential to consider the risks associated with this potential rebound. A drop below the support at $2.31 could invalidate the bullish view and continue the downward trend, potentially to $1.5. Furthermore, the unlocking of 14.9% of EIGEN’s market cap in December could dilute existing holders and impact the token’s value.
Overall, the buying activity by ‘7 Siblings’ and the launch of Infura’s decentralized public infrastructure network on EigenLayer suggest a potential rebound in the token’s value. However, it’s crucial to monitor the technical analysis and market trends to determine the likelihood of a $5 price tag.
Predictions:
- EIGEN price could retest the resistance level at $5 in the short term, driven by the buying activity by ‘7 Siblings’ and the launch of Infura’s decentralized public infrastructure network on EigenLayer.
- The unlocking of 14.9% of EIGEN’s market cap in December could lead to a short-term decline in the token’s value.
- The formation of a double-bottom pattern on the daily chart suggests a potential bullish reversal, which could lead to a sustained increase in the token’s value.
