- Whale deposits signaled concern as EIGEN faced a significant loss.
- On-chain data and liquidation heatmap suggested bearish sentiment, signaling more price drops.
A recent whale deposit of 2 million Eigenlayer [EIGEN], valued at $3.18 million, into Binance has raised eyebrows in the crypto community.
The whale had previously withdrawn the same amount of EIGEN for $9.07 million just two months ago, but with the price now dropping drastically, this investor faces a staggering loss of $5.89 million.
The price of the altcoin has decreased from $4.53 to $1.59, leaving many wondering if this is a warning or a sign of an eventual recovery.
What’s behind the current EIGEN price action?
At press time, EIGEN was trading at $1.61, showing a sharp 9.77% decrease within the last 24 hours. The price has seen a steady decline from the peak of $5.659, and it’s now below critical resistance levels.
Key resistance levels were at $2.20, $3.03, and $3.47, indicating where the price may face difficulty breaking through.
Support was also looking weak, with the $1.60 level showing potential for further support if the price doesn’t drop lower.
Based on the current market trend, a brief consolidation near the $1.60 range could be expected.
However, with the current downtrend, the likelihood of a potential further decrease towards the $1.42 mark looms unless market conditions change soon.
On-chain activity and market sentiment
The on-chain signals for EIGEN remained bearish at the moment. Net network growth stood at 0.74%, which pointed to limited growth.
The concentration of assets and large transactions were also showing negative trends with -0.08% and -2.22%, respectively.
These signs reflected decreasing interest
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Author: Erastus Chami
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