EigenLayer’s token dropped for four consecutive days even as “7 Siblings” bought the dip, hoping for its eventual rebound.
EigenLayer (EIGEN) token tumbled to $2.3, its lowest level since Nov. 3, and down by 33% from its highest point this week and 52% below its all-time high.
Data from Nansen shows that “7 siblings” bought 1.07 million EIGEN tokens valued at $2.59 million, which is a sign that they expect it to eventually bounce back.
In the past two days, the entity "7 Siblings" accumulated 1.06M $EIGEN for 833.75 $ETH, valued at $2.59M, at an average price of $2.43.0x267ed5f71ee47d3e45bb1569aa37889a2d10f91e pic.twitter.com/gHrCNS2OkB
— Onchain Lens (@OnchainLens) November 15, 2024
This acquisition is notable because they are some of the biggest crypto investors, with over $106 million in their wallets. Their biggest holdings are staked Ethereum (ETH) tokens, Compound (COMP), and USD Coin.
EIGEN token also retreated even after Infura announced that it was launching a decentralized public infrastructure network on EigenLayer. This will be a big event since Infura is one of the biggest infrastructure network in the crypto industry, processing over 700 billion RPC requests a year. This launch comes after RedStone launched its testnet on Eigen’s AVS network.
EigenLayer has become a leading player in Decentralized Finance, where it provides restaking solutions. It has over $12.89 billion in assets, making it the third-biggest network in DeFi after Lido and AAVE.
EigenLayer launched its airdrop in September and has achieved a market capitalization of $435 million. Its fully diluted valuation has dropped from over $6 billion to $3.9 billion. A key challenge is that 14.9% of its market cap will be unlocked in December, diluting existing holders.
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Will EIGEN price retest $5?
EigenLayer chart | Source: crypto.news
The daily chart shows that the EigenLayer price has been in a steep downward trend, falling in the past four consecutive days. The current phase of the downtrend started when EigenLayer token formed a shooting star on Nov. 10. This is one of the most popular bearish reversal signs in technical analysis.
EIGEN was trading at $2.315 on Friday, a notable level as it was its lowest level on November 3. It has also dropped below the 15-period moving average.
On the positive side, it has formed a double-bottom pattern, which is a popular bullish reversal sign. If it works out, it means that the coin will rebound and possibly retest the resistance level at $5, which is 115% above the current level.
A drop below the support at $2.31 will invalidate the bullish view and continue its downward trend, potentially to $1.5.
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