Trading just below the $4 mark currently, EigenLayer [EIGEN] recently made an impressive jump from $3.71 to $4.13, marking an 11.8% surge within a span of two hours.
Since hitting a low of $3.28 on Monday, the EigenLayer token has seen a notable 28.58% increase as of the time of this writing. This rapid surge has also managed to surpass a previously strong resistance level at $3.7 that was holding firm last week.
Potential Bullish Targets with Extension Levels
Between the 3rd and 7th of October, EIGEN was confined within a range of $3.255 to $3.7. There was a slight drop to $3.1 on October 6th, but the bulls swiftly recovered from this low later in the day.
Throughout this week, trading volume has remained consistently high as the token continues its upward movement. The Money Flow Index has indicated robust buying pressure, although traders are advised to remain cautious of any signs of a potential bearish divergence.
The price has been hovering in the upper half of the Bollinger bands, with the width of the bands reflecting the increased volatility seen over the past two days. Traders anticipate that the 20-period SMA could act as a strong support level in case of a price correction.
By utilizing Fibonacci extension levels beyond $4.04, traders have been presented with various short-term targets based on the upward momentum that breached the $3.7 resistance level.
Confidence in Bullish Sentiment Persists
Over the past three days, Open Interest has been on an upward trend in tandem with the price of EIGEN.
This uptick indicates a prevailing bullish sentiment in the futures market, with a willingness to take long positions, despite Bitcoin [BTC] facing challenges in breaching the $63k resistance zone.
In recent days, spot CVD has shown stability but has started to show signs of an upward shift in the last 24 hours. The high funding rate suggests a prevalence of long positions in the market.
Disclaimer: The insights provided are the writer’s opinion and do not constitute financial, investment, or trading advice.