EIGEN Technical Analysis Jan 24

Current market structure dominated by LH/LL pattern indicating downtrend; close above $0.3433 required for bullish structure break.

Market Structure Overview

EIGEN is trading at $0.34 level, with overall market structure reflecting a clear downtrend. The recently formed Lower Highs (LH) and Lower Lows (LL) pattern confirms the dominance of the bearish structure. Price continues to stay below EMA20 ($0.38) and Supertrend is giving a bearish signal. MTF analysis (1D/3D/1W) detects 10 strong levels: 1D with 1 support/4 resistance, 3D with 2S/2R, 1W with 2S/1R. This indicates resistance pressure dominates in the short-medium term. RSI at 36.20 approaching oversold, while MACD with negative histogram supports bearish momentum. For structure change, upward BOS (above $0.3433) or downward BOS (below $0.3190) is expected. EIGEN’s structural outlook is subject to downside pressure depending on BTC correlation.

Trend Analysis: Uptrend or Downtrend?

Uptrend Signals

Higher Highs (HH) and Higher Lows (HL) pattern required for uptrend. No such signal in current structure; recent move up from swing low $0.3190 reached $0.3433 but failed to make new HH. Bullish continuation target $0.5349 (score:25), but this requires BOS above $0.3433 resistance first. Close above EMA20 ($0.38) could form short-term HL and signal CHoCH. However, RSI at 36 shows weak momentum; RSI 50+ and MACD crossover expected for uptrend.

Downtrend Risk

Downtrend confirmed with LH/LL: Latest swing high $0.3433 (LH) below previous $0.6685 and $0.8845. $0.3190 critical support as LL. Bearish breakdown target $0.0701 (score:22). Supertrend resistance at $0.43, below price. MTF resistance abundance supports LL continuation. Break below $0.3190 forms new LL and strengthens downtrend.

Structure Break (BOS) Levels

Structure break (Break of Structure – BOS) is key to trend change. Bullish BOS: Daily close above $0.3433 swing high breaks LH and looks for HL. This opens path to $0.38 EMA20 and $0.43 Supertrend; CHoCH starts uptrend. Bearish BOS: Close below $0.3190 swing low confirms LL and opens path to $0.0701. Additional resistance levels $0.6685 and $0.8845 far for bullish BOS. 1W timeframe 1R/2S balance makes downward BOS more likely. These levels based on swing points; scores: $0.3190 (82/100 support), $0.3433 (73/100 resistance).

Swing Points and Their Importance

Recent Swing Highs

Recent swing highs: $0.3433 (near LH, score 73/100), $0.6685 (medium-term resistance, 66/100), $0.8845 (long-term peak, 67/100). These levels define LH pattern; upside move without $0.3433 break seen as temporary rally. Rejection at $0.3433 pulls LH continuation and new LL risk higher.

Recent Swing Lows

Critical swing low: $0.3190 (score 82/100, strong support). This level represents current LL; break triggers bearish BOS. Previous lows align with MTF 3D/1W supports. Hold at $0.3190 allows local HL formation but doesn’t break overall LH/LL.

Bitcoin Correlation

BTC at $89,736, +0.04% 24h slightly up but overall downtrend (Supertrend bearish). BTC supports $88,400 / $86,634 / $84,681; resistance $91,192. If BTC dominance rises, alts (including EIGEN) come under pressure. EIGEN highly correlated with BTC; BTC drop below $88,400 increases EIGEN $0.3190 BOS risk. BTC BOS above $91,192 could trigger EIGEN rally to $0.3433. BTC downtrend impacts EIGEN structure downward – be cautious with altcoins.

Structural Outlook and Expectations

Structural outlook bearish: LH/LL dominant, consolidation in $0.34 range ($0.33-$0.35). Watch for bullish BOS (above $0.3433) or bearish BOS (below $0.3190) for trend change. No news, stay technical-focused. For spot trading check EIGEN Spot Analysis, for futures EIGEN Futures Analysis. Market structures can change rapidly; risk management is essential. Educational note: HH/HL bullish structure, LH/LL bearish; BOS with CHoCH signals trend reversal.