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EigenLayer (EIGEN) Surges 23% as It Nears New Record

EigenLayer (EIGEN) is making headlines with a 23% price surge today. After a somewhat bearish week, this altcoin is gaining momentum and capturing the interest of traders and investors alike. 

With this rally, EIGEN is close to hitting a new all-time high (ATH). Excitement is building among market participants, who are eager to see if the altcoin can maintain its gains. 

EigenLayer (EIGEN) token surges 23%, nearing all-time high, with upcoming token unlock.
Source: https://www.blocmates.com/news-posts/eigenlayer-tvl-surpasses-20-billion

Potential for Renewed Interest in EigenLayer 

Since launching, the activity among EIGEN holders has been relatively low. Currently, about 8,000 addresses are active on the network, a sharp decline from the 164,000 seen on October 1. 

This drop in user engagement has been a challenge for the token. However, the recent price increase could spark renewed interest among holders and boost overall network activity. 

As EIGEN’s price rises, it may motivate more holders to re-engage, leading to a possible uptick in active addresses. This would not only strengthen the token’s market position but also enhance investor confidence. 

Read more crypto news at Coinbackyard! 

Upcoming Token Unlock Could Affect EIGEN 

A major factor driving momentum for EIGEN is the upcoming unlock of 11.22 million EIGEN tokens, valued at about $37.81 million, or 6.01% of its circulating supply. 

Typically, token unlocks can cause a price drop due to increased supply. However, the current positive sentiment around EIGEN suggests that investors are keen to buy into the rally, possibly looking to sell before the unlock. 

This strategy may help keep the upward trend going, but it also poses a risk of a sharp sell-off once the unlock happens. Investors are closely monitoring the market, and their trading timing will likely impact EIGEN’s short-term price movements. 

EIGEN’s Price Movement and Predictions 

EIGEN is currently trading at $3.92 and is approaching a key resistance level at $4.15. If it breaks through this level, it could see further gains, potentially rising to $4.24, which would set a new ATH. 

If the bullish momentum continues, EIGEN could surpass its current ATH of $4.24 and aim for $4.94, the intra-day high from its listing day—a 25% increase in price. 

However, EIGEN needs to flip the $4.15 resistance into support to confirm the uptrend and attract more buyers. If investors decide to sell before breaking $4.15, the price might drop to $3.75, erasing recent gains and paving the way for a potential downtrend. 

October 9, 2024 at 2:12 pm

Updated October 9, 2024 at 2:12 pm

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