Deep Dive
1. Technical Rebound (Bullish Impact)
Overview: EIGEN’s RSI7 hit 27.8 (oversold) on December 8, its lowest since early November. Historically, RSI below 30 has preceded short-term bounces. The MACD histogram turned positive (+0.0058), signaling weakening bearish momentum.
What this means: Traders often interpret oversold RSI as a buying opportunity, especially when paired with bullish divergences like MACD crosses. However, EIGEN remains below key moving averages ($0.53 7-day SMA, $0.63 30-day SMA), suggesting resistance ahead.
What to look out for: Sustained closes above $0.50 (Fibonacci 23.6% level) could confirm short-term bullish momentum.
2. Google Cloud Partnership (Bullish Impact)
Overview: EigenCloud became a launch partner for Google’s Agent Payments Protocol (AP2) on December 1, enabling verifiable AI agent transactions (EigenCloud). This aligns with EigenCloud’s focus on trust-minimized AI infrastructure.
What this means: The collaboration validates EigenCloud’s use case in AI-driven crypto applications, a narrative that gained traction after Vitalik Buterin’s November comments on AI-blockchain synergy. Projects integrating verifiable AI have outperformed peers by 18% in Q4 2025.
3. Token Unlock Impact Neutralized (Mixed)
Overview: On December 1, 36.8M EIGEN ($21.8M) unlocked—10.8% of circulating supply. Despite initial fears, selling pressure was muted due to staking incentives (25% APR) and institutional accumulation via platforms like Flow Traders.
What this means: Markets anticipated the unlock, with EIGEN dropping 12% in the week prior. Post-unlock stability suggests strong hands holding supply, though 43% of unlocked tokens remain in exchange wallets, posing latent risk.
Conclusion
EIGEN’s rebound reflects a mix of technical oversold conditions and strategic partnerships counterbalancing supply inflation risks. While the Google Cloud deal strengthens its AI infrastructure thesis, the token remains vulnerable to broader crypto volatility and residual sell pressure.
Key watch: Can EIGEN hold above $0.48 (current pivot point) amid rising BTC dominance (58.4%)? Monitor exchange outflow data for signs of renewed accumulation.