EigenCloud (EIGEN) was among the day’s biggest gainers, climbing 15% as trading volume increased 47%.
The breakout follows a sharp decline from $0.17 to $0.15 after the token was unlocked on April 2. This raised a simple question. Has the additional supply already been absorbed?
What determines the price of EIGEN?
This decision did not happen in isolation. This was accompanied by a broader altcoin rally in recent sessions.
Token Terminal data showed increasing activity on the EigenCloud network. Fees exceeded $48,000 in the last 24 hours, bringing weekly earnings to $112,000.
Nearly half of this weekly total was achieved in a single day. This peak closely matched the 15% price change.
Additionally, user activity has increased significantly. The number of daily active users increased from 36 to 95 in two days, a 2.6-fold increase. Weekly users reached 367.
This type of activity generally reflects increasing participation, which tends to support price strength in the near term.
Is there a sequel or a flashback?
On the charts, EigenCloud (EIGEN) rose from $0.15 to $0.187 in three days, an increase of 24%. This rally suggests that selling pressure from the unlock may have eased.
For almost two weeks, the price moved sideways, forming an inverted head and shoulders pattern. The break above the neckline triggered the surge.
Despite this, the pace now seems slower.
A pullback towards the neckline near $0.17 remains possible. This level also corresponds to the 50% Fibonacci retracement.
The Chaikin Money Flow (CMF), whose reading was 0.22, suggests a constant inflow of capital. The MACD confirmed that capital was coming from buyers, as the green bars on the histogram grew larger.
Therefore, in case of continuation, the next target is set at $0.20, which if breached would change the market structure to be bullish on the daily chart.
Liquidity Accelerates EIGEN’s Uptrend
Meanwhile, liquidity played a key role in this daily rise. Over the past week, orders have been piling up according to the usual flipping pattern mentioned earlier.
Each liquidation of dense clusters led to a surge in prices. Notably, the most significant event was a thousands-dollar short squeeze of EIGEN between $0.16 and $0.17, which led to the breakout.
Currently, a few orders are forming above the price while more liquidity gathers below $0.18. This could suggest a rebound as traders bet more on a correction.
Therefore, traders should monitor how prices react around these liquidity clusters to determine whether EIGEN price will continue to rebound or correct.
Final Summary
- EIGEN’s 15% rise aligns with a sharp increase in trading volume and renewed momentum for the altcoin.
- Nearly half of the week’s network fees were generated in a single day, reinforcing the price breakout
