‎EIGENUSD Struggles to Sustain Bullish Momentum Amid Broader Bearish Pressure

‎Market Analysis – May 6

‎EIGENUSD has faced difficulty maintaining upward momentum, as bearish pressure continues to outweigh bullish signals despite brief signs of recovery.‎

‎EIGENUSD Key Levels:‎

‎Support Levels: $1.0000, $0.2500
‎Resistance Levels: $2.1000, $3.3000

‎EIGENUSD Long-Term Trend: Bearish

‎EIGENUSD continues to exhibit bearish characteristics despite broader market expectations of a bullish recovery. After the significant bullish surge in December 2024—which saw price briefly rise above the $3.3000 level—the asset has since entered a sustained downward trend. This decline has been persistent, with minimal bullish pullbacks as price heads towards key demand zones.
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‎Currently, price is reacting from the $1.0000 demand level, and the daily Relative Strength Index (RSI) indicates an increasing bullish crypto signal. Based on this, a bullish retracement was anticipated. However, price action remains sluggish, with little follow-through to validate a bullish breakout. Despite the RSI suggesting growing momentum, the lack of significant bullish expansion highlights continued seller dominance in the market.
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‎Given this failure to establish a clear bullish reversal, the likelihood of EIGENUSD resuming its broader bearish trend increases. Nonetheless, an immediate bearish reversal has yet to materialize. It is advised to watch the RSI, which is projected to move into the overbought territory—potentially signaling a fresh wave of selling pressure once conditions align.

‎EIGENUSD Medium-Term Trend: Bullish

‎While the long-term outlook remains bearish, the 4-hour chart reveals a temporary bullish bias. Price has formed a classic reverse head-and-shoulders pattern, often associated with bullish reversals. This aligns with the RSI on the 4-hour timeframe, which currently hovers near the oversold region, further supporting a potential short-term upward movement.
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‎However, given the broader weakness in daily momentum, any bullish rally on the 4-hour timeframe is expected to be short-lived. Once this temporary retracement plays out, the prevailing bearish trend is likely to reassert itself.

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