EigenLayer (EIGEN) has seen a sharp rise in price today after a lukewarm week. Thus, the altcoin, which launched amid much hype and controversy, is now experiencing a wave of renewed interest.

With momentum building, EIGEN is eyeing the possibility of setting a new all-time high (ATH). This rally has therefore sparked excitement among traders and investors, who are eager to see if the altcoin can sustain its gains.

EigenLayer may see increased interest

Since its launch, EIGEN holder participation has remained relatively weak. At the time of writing, around 8,000 addresses are active on the network, a significant drop from the 164,000 addresses seen on October 1.

Thus, this decline in activity highlights the challenges the token has faced in maintaining strong user engagement. However, the recent price surge could potentially reignite interest among holders and boost participation in the network.

The expected price increase could reverse the downward trend in network activity. As the price of EIGEN rises, more holders may be incentivized to re-engage. Thus, leading to a possible increase in active addresses. This would further strengthen the token’s position in the market, boosting investor confidence.

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Endereços ativos EigenLayer (EIGEN). EIGEN active addresses. Source: Santiment

Macro momentum for EigenLayer is driven by the impending unlock of 11.22 million EIGEN tokens. These tokens are worth approximately $37.81 million, representing 6.01% of the circulating supply.

In short, token unlocks usually result in a price drop due to the increase in available supply. However, in the case of EIGEN, the current bullish sentiment suggests that investors are buying at the high. Most likely with the intention of selling at the high before the unlock.

This strategy could help the bullish momentum continue, but it also introduces the risk of a sharp sell-off once the unlock occurs. Investors are closely watching the market, and the timing of their trades is likely to influence the token’s price in the short term. As a result, EIGEN’s price movements remain volatile.

Desbloqueio de Token Eigen. Eigen Token Unlock. Source: TokenUnlocks

Price forecast

EIGEN has seen a 23% surge in the past 24 hours, with the price currently trading at $3.92. The altcoin is approaching a crucial resistance level at $4.15. Breaking above this level would pave the way for further gains, with a possible rally to $4.24, marking a new ATH.

If the bullish momentum continues, EIGEN could easily surpass the current ATH of $4.24 and move towards $4.94. This is the intraday high of the listing day, and reaching it would represent a 25% increase in price.

However, the resistance level at $4.15 needs to be converted into support. This would signal a strong continuation of the uptrend and could attract even more buyers.

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Análise de preço EigenLayer (EIGEN). EIGEN Price Analysis. Source: TradingView

On the other hand, if investors choose to sell before EIGEN breaks above $4.15, the price could decline. A drop to $3.75 could erase most of the recent gains, invalidating the bullish outlook and setting the stage for a possible downtrend.

The article EigenLayer Up 23%, Nears New All-Time Highs – Analysis appeared first on BeInCrypto Brasil.