After heavy losses, EigenLayer’s whale accumulation hints at a possible recovery | Credit: Veronica Cestari.
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Key Takeaways
EIGEN’s price hit a new low seven days ago after it crashed from December highs.
However, whales have accumulated millions of the altcoin within the last 24 hours.
The MVRV ratio shows that EIGEN is undervalued as it forms a bullish divergence
On Feb. 3, EigenLayer’s (EIGEN) price hit an all-time low of $1.52 after falling 45% in the last month.
However, one week after hitting this low point, crypto whales accumulate the token in droves. This aggressive accumulation suggests that a potential rebound could be close.
But with market sentiment still fragile, is this still a sign that EIGEN has hit the bottom?
Two months ago, EIGEN’s price rallied to a new all-time high of $5.65. At that time, the token saw increased demand by both retail and whales, which fueled the milestone.
The recent price crash coincided with intensified selling pressure from whales. On Jan. 30, addresses holding between 10 million and 100 million EIGEN tokens collectively had over 250 million tokens.
By the time EIGEN hit its all-time low, their holdings had plunged below $160 million. However, between yesterday and the time of writing, the balance of these addresses has moved from $164 million to over 260 million, indicating that whales have bought the EIGEN dip.
At the altcoin’s current price, this purchase amounts to approximately $165 million. If this buying pressure continues, EIGEN’s price will likely trade higher in the short term.
Bottom Hit?
Moreover, the 30-day Market Value to Realized Value (MVRV) ratio supports the thesis that EIGEN’s price could rebound. This metric shows whether the price is above or below its fair value while providing insights into overall market profitability.
A higher MVRV ratio indicates greater unrealized profits, increasing the likelihood of an asset being overvalued. On the other hand, when the ratio declines, it signifies shrinking gains and potential undervaluation.
Historically, EIGEN reaches an overvalued point when the ratio is between 14% and 45%. It hits the undervalued region when the metric is between -13% and -25%.
As seen below, the token’s 30-day MVRV ratio is -35%, indicating it might have hit the bottom. Thus, if buying pressure increases among these EigenLayer whales, the altcoin’s price rebound might be validated.
EIGEN Price Forms Bullish Divergence
On the daily chart, EIGEN’s price trades within a descending channel after undergoing two months of intense selling pressure.
However, the same chart shows that the token seems to have found support at $1.67. Amid this, the Relative Strength Index (RSI) seems to recover after hitting the oversold region below 30.00.
As this setup takes shape, the Chaikin Money Flow (CMF) reading rises, forming a bullish divergence against the price. The rising CMF validated the whale buying pressure initially mentioned.
If the indicator’s rating breaks above the zero signal line, then EIGEN’s rebound might be validated. In that scenario, the cryptocurrency’s value might rise to $3.05 at the 0.618 Fibonacci level.
Alternatively, if whales decide to distribute the tokens again, this prediction might not come to pass. Instead, the cryptocurrency’s value might decline to another all-time low.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
