Recent Performance:
Retracement: EIGEN has retraced to the midpoint of its November-December rally, testing a critical support zone as it approaches a period of heightened supply due to a token unlock event.
Higher-Timeframe Support: Begins at $3.3792, corresponding to the high of the November 25th bullish gap.
Support Levels:
Primary Support Inside Gap:
$3.3000: November 11th's weekly high, offering initial support within the gap.
$3.1911: November 4th's rejection level, representing stronger secondary support.
Deeper Support: If the gap fails, the next significant zone lies at:
$2.8932: November 24th's bullish gap.
Aligns with November 11th's weekly accumulation midpoint, providing robust support for potential reversal.
Upside Targets:
Short-Term Resistance:
$4.4820: December 21st swing high, where bears’ stops could cluster.
$4.6355: December 14th rejection, likely to act as a significant resistance level.
Long-Term Targets:
$5.0213: December 16th's distribution zone, beyond which resistance appears minimal, allowing for potential price discovery.
Key Considerations:
Token Unlock Impact: Bulls may wait to absorb the newly unlocked supply before initiating significant buying activity.
Breakout Conditions: A decisive move above $4.4820 with volume could trigger a cascade of short covering, driving momentum toward $4.6355 and beyond.
Failure Scenario: A breakdown below $2.8932 would invalidate the bullish structure, signaling deeper retracement and potential accumulation at lower levels.
Retracement: EIGEN has retraced to the midpoint of its November-December rally, testing a critical support zone as it approaches a period of heightened supply due to a token unlock event.
Higher-Timeframe Support: Begins at $3.3792, corresponding to the high of the November 25th bullish gap.
Support Levels:
Primary Support Inside Gap:
$3.3000: November 11th's weekly high, offering initial support within the gap.
$3.1911: November 4th's rejection level, representing stronger secondary support.
Deeper Support: If the gap fails, the next significant zone lies at:
$2.8932: November 24th's bullish gap.
Aligns with November 11th's weekly accumulation midpoint, providing robust support for potential reversal.
Upside Targets:
Short-Term Resistance:
$4.4820: December 21st swing high, where bears’ stops could cluster.
$4.6355: December 14th rejection, likely to act as a significant resistance level.
Long-Term Targets:
$5.0213: December 16th's distribution zone, beyond which resistance appears minimal, allowing for potential price discovery.
Key Considerations:
Token Unlock Impact: Bulls may wait to absorb the newly unlocked supply before initiating significant buying activity.
Breakout Conditions: A decisive move above $4.4820 with volume could trigger a cascade of short covering, driving momentum toward $4.6355 and beyond.
Failure Scenario: A breakdown below $2.8932 would invalidate the bullish structure, signaling deeper retracement and potential accumulation at lower levels.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.