Latest EigenCloud (EIGEN) Price Analysis

Deep Dive

1. Token Unlock Sell Pressure (Bearish Impact)

Overview:
On Dec 1, EigenCloud released 36.82M EIGEN (10.8% of supply), part of a broader wave of December unlocks totaling $333M across projects. High insider ownership (10.8%) increases risk of rapid selling, as unlocked tokens often flood markets during low-liquidity periods.

What this means:
The unlock expanded circulating supply by ~7.5%, creating immediate sell-side pressure. EIGEN’s 24h volume ($37.3M) is only 1.7x the unlock value, making absorption difficult. Historical data shows EIGEN dropped 45% after a similar unlock in February 2025.

What to watch:
Exchange inflow spikes and wallet activity from insider addresses (e.g., team/advisors).

2. Broader Market Contagion (Bearish Impact)

Overview:
Bitcoin fell 5% on Dec 1 due to macro fears (BoJ policy, China data), triggering $646M in liquidations. The crypto Fear & Greed Index sits at 21 (“Extreme Fear”), with altcoins underperforming BTC (+58.5% dominance).

What this means:
EIGEN’s beta to ETH and BTC intensified the drop. Projects with high FDVs ($2B+ for EIGEN) and weak tokenomics face outflows first during risk-off phases.

3. Technical Breakdown (Bearish Impact)

Overview:
EIGEN trades below all key moving averages (7-day SMA: $0.55, 30-day SMA: $0.65). The MACD histogram shows weak bullish momentum (+0.011), while RSI 34.3 suggests oversold conditions but no reversal signal.

What this means:
The $0.50 level is critical psychological support. A close below $0.492 (Dec 5 low) could trigger algorithmic selling toward the 2025 low of $0.35.

Conclusion

EIGEN’s drop reflects a triple threat: token unlocks magnifying supply, macro-driven altcoin weakness, and technical breakdowns. While RSI hints at oversold conditions, the lack of bullish catalysts and high FDV suggest caution.

Key watch: Can EIGEN hold $0.50, or will December’s $333M token unlock wave deepen the rout? Monitor exchange reserves and BTC’s stability near $86K.

Deep Dive

1. Token Unlock Liquidity (Bearish Impact)

Overview: On December 1, 2025, 10.8% of EIGEN’s circulating supply ($18M) was unlocked, per CoinDesk. This follows a pattern of token unlocks pressuring prices, as seen with SUI’s $85M unlock the same day.

What this means: Unlocks increase sellable supply, particularly when timed amid weak market sentiment. EIGEN’s 24h volume ($54.4M) suggests the unlock added ~33% liquidity, likely exacerbating downward momentum.

What to watch: ENA’s $50.4M unlock on Dec 2 could spill over into restaking-linked tokens like EIGEN.

2. Macro Liquidity Squeeze (Mixed Impact)

Overview: Global risk assets slumped on Dec 1 due to fears of Bank of Japan rate hikes and weak Chinese PMI data. Bitcoin fell 5%, dragging altcoins lower.

What this means: EigenCloud’s correlation with ETH (-6.57%) and BTC reflects its sensitivity to macro liquidity. However, its -1.58% drop vs BTC’s -5% suggests relative resilience, possibly due to EigenCloud’s institutional adoption (e.g., Flow Traders’ Cap integration on EigenLayer).

What to watch: Fed Chair Powell’s Dec 1 speech – dovish tones could stabilize markets.

3. Technical Rejection at Key Level (Bearish Impact)

Overview: EIGEN faces resistance at its pivot point ($0.5848) and 30-day SMA ($0.6664). The MACD histogram turned positive (+0.0147), signaling short-term momentum, but RSI (41.16) remains neutral.

What this means: Bulls failed to hold gains above the 7-day SMA ($0.5809), confirming bearish control. The 61.8% Fibonacci retracement level ($0.6526) now acts as critical resistance.

What to watch: A sustained break above $0.5848 could signal reversal; failure risks a retest of the Nov 25 low ($0.4923).

Conclusion

EIGEN’s decline reflects token unlock headwinds and macro uncertainty, though its underperformance vs ETH/BTC hints at project-specific risks. Positive developments like Flow Traders’ institutional adoption of EigenCloud infrastructure have yet to offset selling pressure.

Key watch: EIGEN’s ability to hold the 23.6% Fib level ($0.8128) on a weekly close – a breakdown here could accelerate losses toward yearly lows.