Deep Dive
1. Post-Unlock Supply Pressure (Bearish Impact)
Overview:
EIGEN unlocked 36.82M tokens (10.8% of supply) on December 1, 2025, valued at $21.8M. While not directly tied to the past 24h, such events often create multi-week sell pressure as insiders gradually liquidate.
What this means:
Token unlocks increase circulating supply without proportional demand, creating structural headwinds. Historical data shows EIGEN fell 65% over 60 days post-unlock, suggesting holders may prioritize capital preservation in thin markets.
What to look out for:
Exchange inflow spikes via Token Unlocks – a sustained rise could signal accelerated dumping.
2. Altcoin Liquidity Drain (Bearish Impact)
Overview:
Bitcoin dominance hit 58.7% on Dec 17, up 0.26% in 24h, while the Altcoin Season Index remains at “Bitcoin Season” (score 20).
What this means:
Capital is rotating to Bitcoin amid macro uncertainty (Fed rate policy, China crypto crackdowns). EIGEN’s 24h volume ($61.9M) represents 31% of its market cap – high turnover typically exacerbates downside in risk-off markets.
3. Technical Breakdown (Mixed Impact)
Overview:
EIGEN trades at $0.407, below all key EMAs (7-day: $0.438, 30-day: $0.541). The RSI-14 (29) suggests oversold conditions, but MACD remains bearish (-0.073).
What this means:
While oversold, the lack of bullish divergence and Fibonacci support breaks (next level: $0.399) suggests caution. A reclaim of $0.542 (50% retracement) is needed to signal trend reversal.
Conclusion
EIGEN’s dip reflects post-unlock dilution, BTC-centric market flows, and broken technical supports. The oversold RSI could fuel a dead-cat bounce, but sustained recovery likely requires broader altcoin momentum. Key watch: Can EIGEN hold $0.399 (2025 low) amid thinning holiday liquidity?