Eigen Layer Market Analysis- July 14
Eigen Layer (EIGENUSD) shows strong signs of a bullish reversal as price regains upward momentum, setting its sights on breaching the key $1.720 resistance level.
EIGENUSD Key Levels
Support Levels: $1.020, $0.650
Resistance Levels: $1.720, $2.250
EIGENUSD Long-Term Trend: Bullish
EIGEN has completed a full bullish reversal, positioning itself for a potential continuation to higher price levels. The market was initially under strong selling pressure during the first quarter of the year, with price falling sharply toward the $0.650 demand zone. At that level, a failed low formation emerged, signaling a shift in market sentiment and the start of bullish momentum.
Following this development, buyers drove the price up to the $1.720 supply level. Although a subsequent retracement occurred, it was strongly defended at the $1.020 demand zone. This defense resulted in a clear bullish structure shift, confirming the reversal and setting the stage for a potential upward continuation.
The daily Relative Strength Index (RSI) supports this outlook, showing a steady rise that reflects growing bullish momentum and increased buyer interest. Currently, the market is printing strong bullish candles as it approaches the $1.720 resistance, aiming to breach the level and push further upward.
EIGENUSD Short-Term Trend: Bearish
On the 4-hour chart, EIGEN is experiencing a temporary bearish pullback, characterized by its failure to print a new higher high. The RSI on this timeframe also shows a drop from the overbought region, suggesting a short-term cooling in buying pressure.
In addition, liquidity pools lie just below the current price, attracting sell-side interest and making a deeper retracement likely. With the higher timeframe still strongly bullish, this short-term decline is best viewed as a corrective phase.
It is advised to monitor the 0.5 Fibonacci retracement level as a potential support zone for bullish continuation.
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