EIGEN remains under longer-term bearish pressure, but its price action is showing early signs of stabilization after completing a projected downside move. A falling wedge structure, firmer short-term trading behavior, and improving momentum readings point to a possible bullish reversal if key support levels remain intact and buying interest improves.

EIGEN is the native token of EigenLayer, an Ethereum restaking protocol that enables ETH stakers to redeploy their staked assets to secure additional network services. Restaking emerged as one of the more closely watched sectors in decentralized finance during 2024, with EigenLayer becoming a focal point for that activity.

At the time of writing, EIGEN was trading at $0.2150, with 24-hour trading volume of $16.04 million and a market capitalization of $188.1 million, according to CoinMarketCap. The token was down 9.44% over the previous 24 hours, although its developing price structure continued to suggest the possibility of a recovery attempt in upcoming sessions.

EIGEN Forms Recovery Setup After Extended Decline

According to crypto analyst Bitcoin Meraklisi, EIGEN remains in a broader downtrend after breaking below a rising channel and reaching its measured bearish target near the $0.15 support zone. Since that move, selling pressure has eased, with the price stabilizing and forming a higher-low structure that suggests gradual accumulation.

The current price action is developing inside a small falling wedge, a chart pattern often associated with bullish reversals after extended declines. A confirmed breakout above the wedge could move EIGEN toward resistance levels at $0.343, $0.446, and eventually $0.660, according to analyst Bitcoin Meraklısı in an X post.

Despite the improving structure, buyers would need to defend the $0.22 and $0.15 support areas to maintain the recovery setup. A failure to hold those zones would invalidate the bullish formation, while sustained buying could strengthen the view among traders that a trend shift is developing.

RSI and MACD Present Mixed Momentum Signals

According to TradingView, the RSI (14) stood at 48.75, while its signal line was at 52.04. That reading indicates broadly neutral momentum with a slight bearish bias. Because the indicator remains below 50, buyers have not established clear control. A move above 50 would shift the reading more favorably toward buyers.

The MACD line was at 0.00212, with the signal line at 0.00355 and the histogram at -0.00143. The bearish crossover points to slowing upside momentum. At the same time, the narrowing negative histogram suggests that selling momentum is fading.

Although the price projections cited by the analyst are bullish, EIGEN continues to trade within a downward structure based on the technical indicators. The move is also being influenced by the broader crypto market trend, as Bitcoin has started to move lower.

The original article contains market analysis and price predictions. These are not guarantees, and crypto markets remain volatile.