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.
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