Whales accumulating EIGEN: Potential sign of EigenLayer’s future rally?

Whales accumulate EIGEN: Is this a sign of EigenLayer’s future rally?

As of the current moment, EigenLayer [EIGEN] was priced at $2.58, showing a rise of 7.18% within the last day. The trading volume over the past 24 hours reached $158.47 million, indicating a 24.71% increase.

Nevertheless, the Open Interest (OI) for EIGEN was recorded at $66.46 million, demonstrating a decrease of 7.20%.

Large investors, commonly referred to as whales, often provide insights into potential market trends, with EIGEN now taking the spotlight. The strategic accumulation by major investors suggests a growing trust in the token’s future.

An investor holding assets worth $200 million spent 3,391 ETH, equivalent to $10.44 million, over eight days to acquire 4.483 million EIGEN.

This move elevated their EIGEN holdings to 5.04 million, valued at $11.14 million, positioning it as their second-largest asset following ETH. This action highlighted a consistent and intentional approach.

Can Emulating Whales Unlock Success?

The immediate support level for the token was pinpointed at $2.20. Resistance levels were identified at $2.80, with a significant resistance at $3.40, presenting a potential surge of 48.78%.

Recent price movements indicate a rebound from the support trendline, hinting at a probable short-term recovery.

Furthermore, Moving Averages (MA) align closely with these levels.

The 50 SMA at $2.449 serves as immediate resistance, followed by the 100 SMA at $2.703 and the 200 SMA at $2.857, acting as pivotal barriers for sustained upward mobility.

The MACD histogram displayed a decline in bearish momentum, with the signal lines edging towards a potential bullish crossover.

Concurrently, the stochastic RSI resided in the oversold zone, with the fast line at 14.48 and the slow line at 25.64, indicating a probable upward reversal.

While the indicators suggest a bullish outlook, validation via a price breakthrough above $2.80 is imperative for further upward momentum.

Whale Trades Fuel EIGEN’s Surge!

An examination of IntoTheBlock data by CryptoCrypto unveiled a strong connection between whale activity and EIGEN’s price performance. In late September, a substantial increase in large transactions surpassing 1,500 prompted the price to exceed $4.00.

This surge was influenced by heightened interest from institutional players or whales.

Post this peak, both transaction counts and price experienced a gradual decline throughout October, with transactions falling below 500 and the price consolidating within the $2.50-$3.00 range.

Early November depicted stagnant activity, with transactions fluctuating between 50 and 200 daily as the price remained within a narrow spectrum.

In the recent week, activity displayed a slight uptick, with a seven-day peak of 186 large transactions on November 18, juxtaposed with a low of 28 on November 17, illustrating erratic whale involvement.

 

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