At the time of reporting, EigenLayer [EIGEN] was hovering slightly below the $4 mark. In a remarkable upward movement, the token escalated from $3.71 to $4.13 within a span of two hours, marking an impressive 11.8% increase.
Since touching a low of $3.28 on Monday, the EigenLayer token has seen a notable surge of 28.58% at the time of drafting. This recent uptrend also successfully broke through a resistance level at $3.7 that had been holding firm since the previous week.
Potential Bullish Targets Identified through Extension Levels
Between the 3rd and 7th of October, EIGEN was confined to trading within the range of $3.255 and $3.7. A slight drop to $3.1 occurred on October 6th, which was swiftly recovered by bullish investors later in the day.
Throughout this week’s ascent, trading volume has remained consistently high. The Money Flow Index indicated a strong influx of buying activity, although traders are advised to remain cautious of a probable bearish divergence.
The price position was observed in the upper section of the Bollinger bands, with the bandwidth reflecting the heightened volatility experienced over the past two days. It is anticipated that the 20-period SMA will offer support in the event of a price correction.
By surpassing the $4.04 milestone, Fibonacci extension levels were introduced to traders as short-term objectives. These levels were established based on the upward impulse that surpassed the $3.7 resistance level.
Confidence in Bullish Direction Maintains Steadfast
Over the past three days, the Open Interest has displayed an upward trajectory in alignment with EIGEN’s price movement.
This surge indicated a strong bullish sentiment prevailing in the futures market, showcasing an inclination towards long positions, even amidst Bitcoin [BTC] facing challenges in breaching the $63k resistance barrier.
In contrast, the spot CVD exhibited a stagnant trend in recent days but has started to shift towards an upward trajectory within the last 24 hours. Moreover, the elevated funding rate suggested a predominance of long positions in the market.
Disclaimer: The information provided is not intended as financial, investment, trading, or any form of advice, and solely represents the personal opinion of the author.