This week, the EIGEN token experienced significant growth, reaching a level of $1.63. This increase is supported by high trading volume and network activity.
Reasons Behind EIGEN's Surge
EIGEN surged from $0.77 to $1.63, marking a 91% gain over the week. One of the contributing factors was the $1.6 billion in ETH restaking liquidity recorded on May 9, the highest figure in over three months. Futures Open Interest doubled from $37 million to $76.5 million, indicating an increase in leveraged positions.
Smart Money Activity
On May 13, a whale deposited 8 million EIGEN into Binance, realizing a profit of $596,000 in just four days. Despite this sale, the whale still holds 10.9 million EIGEN. This transaction prompted an 11.2% dip in EIGEN's price, illustrating typical short-term profit-taking behavior during broader market weakness.
Future Projections for EIGEN
The current breakout above $1.35 is not merely technical; it is backed by bullish patterns and trading volume. EIGEN is expected to potentially reach $2.15 within 10-14 trading days if the support at $1.35 holds. The ongoing rise in Open Interest and sustained trading volume back this forecast, although some short-term volatility may persist.
The EIGEN token demonstrates strong technical indicators and market activity, establishing a foundation for potential further growth. Success will largely depend on maintaining key support levels.
