EigenLayer (EIGEN) Faces Critical Support at $1.03 Amid Bearish Trends

EigenLayer (EIGEN) is currently trading at $1.12, representing a nearly 1% daily increase, yet it is under significant bearish pressure as indicated by the RSI at 38.65 and the negative MACD momentum. The token is approaching a crucial support level at $1.03, which could determine its short-term direction. The prevailing technical signals suggest that unless there is a strong reversal, EIGEN might break below this critical support, potentially leading to further declines.

Examining the recent price action and technical indicators, the RSI below 40 reflects a leaning toward oversold conditions, but it also highlights the weakness in the current bullish attempt. The negative MACD confirms the bearish momentum, indicating that sellers are still in control despite minor upward movements. This confluence of signals suggests a fragile support zone, where a breach could accelerate downward movement in EIGEN's price.

Investors and traders should closely monitor the $1.03 support level. If the price convincingly breaks below this threshold with increasing volume, it may confirm a bearish continuation. Conversely, if EIGEN finds support and bounces back, it could signal a potential reversal or consolidation. Given the current technical landscape, caution is advisable, as the risk of further downside remains significant without renewed buying momentum.