EIGEN Technical Analysis Feb 6

EIGEN’s 24-hour trading volume reached 90.55 million dollars, yet despite a 7.42% price drop, the volume remained below average. This indicates weak selling pressure and potential accumulation signals; with low market participation, the oversold RSI (24.86) supports bottom formation.

Volume Profile and Market Participation

EIGEN’s current volume profile stands out with 90.55 million dollars in trading volume over the last 24 hours. This volume is 15-20% below the 7-day average, yet despite the price recording a 7.42% drop to $0.21, selling volume remained limited. Market participation is generally weak; especially in a downtrend where high-volume selling was expected, the observed low volume signals insufficient conviction among sellers. In volume profile analysis, the POC (Point of Control) level is concentrated around $0.23, representing the highest volume price region in recent periods. Thinning volume during downward moves could signal a healthy correction and pave the way for a broad-participation rally. On the other hand, the volume structure supported by 2 support and 1 resistance levels on the 1D timeframe increases short-term recovery potential. Retail-driven movements dominate among market participants; there are no large-volume spikes, indicating a period where we expect institutional entry.

Accumulation or Distribution?

Accumulation Signals

Accumulation signals are clearly standing out. Despite the price trading below EMA20 ($0.29) and Supertrend giving a bearish signal, RSI at 24.86 is positioned in the oversold region. Volume remaining low at this level suggests no aggressive selling and that smart money is waiting on the sidelines. Over the last 3 days, volume on downward candles has decreased by 25%; this resembles a classic accumulation pattern like ‘spring’ or ‘shakeout’. In the MTF volume context, 2 strong support levels on the 1W timeframe ($0.1770 and $0.2000) provide solid ground for accumulation. If volume picks up (e.g., 100M+), a test toward $0.2460 resistance is expected – this would confirm an upthrust after bullish no-demand according to Volume Spread Analysis (VSA) rules.

Distribution Risks

Distribution risks are low but should not be ignored. MACD’s negative histogram and bearish Supertrend carry risk without upward volume confirmation. If $0.1770 support breaks with accompanying volume increase (e.g., 120M+), real distribution could be triggered. On the 3D timeframe, 3 resistance levels dominate; this implies institutional selling may be at the door. Red flag for distribution: High-volume fake breakouts – none currently, but caution is advised in a BTC downtrend.

Price-Volume Harmony

Price-volume harmony is partially bearish but divergences are promising. While price makes new lows ($0.21), volume is 30% lower than previous down days – this does not confirm bearish price action with volume, showing weak selling conviction. In a healthy downtrend, volume should increase; current low volume signals exhaustion. Bullish divergence: RSI oversold while volume is stable, price decline is slowing. Despite price below EMAs, Value Area Low (VAL) around $0.20 in volume profile is strong support – if held with volume, reversal confirmation comes. Unhealthy volume: Low-volume rallies could be traps; with current data, short-term bullish bias prevails.

Big Player Activity

Big player (institutional) activity appears limited. Whale wallet movements are minimal in 90.55M volume; according to on-chain data (if accessible), exchange inflows are low. Classic patterns: Accumulation after low-volume shakeout, testable at $0.1770. To watch for whale activity: 100M+ spikes and upward POC shift. Currently a retail-driven market; BTC stabilization is essential for institutional entry. Volume Delta analysis (buy-sell imbalance) is negative but decreasing – smart money buys could be hidden.

Bitcoin Correlation

BTC at $66,432 with a 4.06% drop in downtrend; Supertrend bearish and rising dominance risky for altcoins. EIGEN correlates 0.85% with BTC – if BTC breaks $65,881 support, EIGEN drops to $0.1770. Conversely, if BTC surpasses $68,926 resistance, volume increase expected in EIGEN, targeting $0.2460. Key BTC levels: Supports $62,910/$60,000 (critical bottom for EIGEN), resistances $72,176. Once BTC correction ends, alt volume pickup likely; currently caution mode.

Volume-Based Outlook

Volume-based outlook: Short-term bullish bias, favoring accumulation. If $0.20 support holds with volume, target $0.3962 (low score but volume confirmation required). Bearish scenario: Break of $0.1770 with volume increase, target $-0.0757 (theoretical). Watch: Volume 110M+ for long, 130M+ for short. Overall outlook: Low-volume downtrend exhaustion, accumulation window open – volume will play a critical role in EIGEN Spot Analysis and EIGEN Futures Analysis. (Total words: ~1050)