Comprehensive Technical Analysis of EigenLayer (EIGEN)

Step 1: Trend Analysis (Daily & Intraday)

• Primary Trend: EIGEN exhibited significant upward spikes between May and mid-July 2025, peaking at 1.63 before altering the trajectory to a marked downtrend. Since then, the price persistently set lower highs and lower lows, culminating in a broad shift in market sentiment. The June–July selloff was pronounced, fueled by increases in volume on red candles.
• Recent Price Action: From late July into early August, the price struggled near the 1.10 level, displaying indecision and failing repeated recoveries above 1.20. The four most recent daily closes indicate lower highs and waning bullish momentum after each rebound. The current price (1.1019) is at the bottom of this latest consolidation range.
• Hourly Structure: The short-term hourly chart in August demonstrates failed rallies around 1.15–1.16, followed by lower lows (1.09, 1.10) and resistance capping rebounds. The structure sets up a strong likelihood for further breakdown unless buyers step in aggressively.

Step 2: Moving Averages (MA)

• Simple Moving Averages (SMA):
  • The 20-day SMA (approx. 1.20) slopes downward, establishing dynamic resistance above.
  • The 50-day SMA is near 1.32, far above current price—highlighting how oversold recent action is.
• EMA Crossovers:
  • 10-EMA recently crossed below the 20-EMA; bear confirmation.
  • Price is below both averages, an added bearish layer, suggesting continuation to the downside.

Step 3: Support and Resistance

• Immediate Resistance: 1.13 (intraday), 1.16 (recent swing high), 1.20 (psychological/structural cap)
• Immediate Support: 1.09 (hourly pivot), 1.05 (recent flush low), 1.03 (June support)
• Breakdown Level: If price cracks below 1.10 again with volume, next support is only at 1.05–1.03; below that, risk to parity (1.00) grows.

Step 4: Volume & Momentum Analysis

• Volume Trends:
  • Bearish days recently have higher relative volume. Bullish attempts have diminishing volume.
  • No strong accumulation zone, suggesting institutionals are not supporting price significantly at this level.
• Momentum:
  • RSI (estimated using price action structure) likely < 40, but not oversold (no bullish divergence yet).
  • MACD (projection): Bearish lines trending below signal, with increasing histogram downside.

Step 5: Volatility & ATR (Average True Range)

• ATR (estimated): Recent daily range remains ~$0.06–$0.09. Downward breakouts have had sharp 4–7% daily moves recently.
• Implication: If 1.10 fails, a move to 1.05 (or even lower) is plausible in a single session.

Step 6: Chart Patterns & Candlestick Formations

• Pattern Formation:
  • Descending triangle pattern forms from 1.16 down to 1.10: classic bearish continuation if breakdown occurs.
  • Recent hourly dojis and lower closes near support: signals equilibrium tilting bearish.
• Absence of Bullish Reversal:
  • No clear hammer, no engulfing reversal, no bullish divergences observed, indicating rebound attempts lack conviction.

Step 7: Fibonacci Retracements

• Major swing: 0.77 (May) → 1.63 (July).
  • 50% retracement: ~1.20 (former support, now resistance).
  • 61.8% retracement: ~1.11 (current level, decisively under threat).
  • If this zone fails, retracement targets suggest 1.03 (78.6%).

Step 8: Order Book & Market Structure (Inferred)

• Order Flow: Repeated defense of 1.10 but with successively weaker bounces.
• Liquidity Gaps: Fast moves between 1.10 and 1.03 indicate a thin bid wall—potential for rapid downside once 1.10 is breached.

Step 9: Sentiment & External Factors

• Market Sentiment: Neutral-bearish. Altcoin sector under pressure broadly; lack of news catalysts for EIGEN.
• No evidence of reversal event or accumulation.

---

Conclusion:

All studied indicators (trend, volume, momentum, volatility, chart patterns, support/resistance, Fibonacci levels) point to continued bearish pressure.

• Key Decision Point: The 1.10 level is crucial. The price is on the cusp of a potential breakdown.
• High probability the breakdown continues toward 1.05 and 1.03, considering strong resistance above and weak defense below. A short position is optimal here.

Final Position: SELL/SHORT

• Open Price: Ideally near 1.10–1.102, after any weak attempt to reclaim that level intraday.
• Target/Close Price: 1.045 (first significant hourly/daily support); possibility exists for extension to 1.03, but prudent risk management dictates taking profits ahead of major daily demand.