EIGEN Technical Analysis Feb 10

EIGEN is maintaining its downtrend with a clear LH/LL structure and is facing resistance around $0.20. A break of the $0.1681 swing low could trigger a structural breakdown (CHoCH) and lead to lower levels.

Market Structure Overview

EIGEN’s current market structure indicates a clear downtrend. The price has recently exhibited a lower highs (LH) and lower lows (LL) formation, maintaining its bearish character. The current price is at $0.20, with a 24-hour change of -3.90% under negative pressure. The price, unable to hold above EMA20 ($0.26), confirms the short-term bearish structure. Although RSI at 25.24 is in the oversold region, the MACD’s negative histogram shows downward momentum. In multi-timeframe (MTF) analysis, a total of 11 strong levels were identified across 1D, 3D, and 1W charts: 1 support/3 resistances on 1D, 2S/2R on 3D, and 2S/3R distribution on 1W. This emphasizes high resistance density on the upside and potential for the downtrend to continue. Market structure analysis defines a higher highs/higher lows (HH/HL) as a bullish trend, while LH/LL defines a bearish trend. EIGEN is currently in LH/LL, and key BOS levels should be monitored to break this structure.

Trend Analysis: Uptrend or Downtrend?

Uptrend Signals

A HH/HL structure is required for an uptrend: each new high must be higher than the previous high, and each low higher than the previous low. There is no such structure in EIGEN at the moment; the last swing high at $0.1998 was rejected, and the price remained below EMA20. For potential bullish signals, a break above $0.2240 resistance (BOS) and new HH formation are needed. Although RSI is oversold, there is no divergence, and Supertrend is giving a bearish signal ($0.29 resistance). The bullish continuation target at $0.4585 (score 30/100) looks distant. In the short term, EIGEN Spot Analysis should be monitored, as volume is low.

Downtrend Risk

The downtrend is confirmed with LH/LL: the last swing low at $0.1681 (score 74/100) is not below previous LLs but is being tested. After breaking the $0.1998 LH, the price retreated to $0.20. MACD is bearish, and the 24h range $0.20-$0.21 is narrow, with consolidation biased bearish. Although the bearish breakdown target of $-0.0235 (score 22/100) is extreme, a break below $0.1681 brings CHoCH and bearish continuation. In MTF, 1W shows 3R/2S dominance, supporting the long-term downtrend.

Structure Break (BOS) Levels

BOS (Break of Structure) confirms trend changes. For bullish BOS, the price needs to break above the last LH at $0.1998 and $0.2240 (score 61/100); this invalidates the structure by forming HL. $0.6325 (old swing high, score 61/100) would be definitive confirmation. Bearish BOS is a break of the $0.1681 swing low: this triggers CHoCH and brings new LLs. Supertrend $0.29 resistance should be monitored. These levels determine the continuation or reversal of the market structure; for example, the 3R excess on 1D facilitates bearish BOS. Investors can trade these breaks in leveraged positions with EIGEN Futures Analysis.

Swing Points and Their Importance

Recent Swing Highs

Recent swing highs: $0.1998 (score 64/100, recent LH rejection), $0.2240, and $0.6325. These act as resistances; around $0.1998, it was tested at current price $0.20 and held. These points form the LH formation and strengthen the bearish structure. If broken (BOS), it signals a trend change; for example, above $0.2240 carries HH potential.

Recent Swing Lows

The last swing low at $0.1681 (score 74/100) is critical support. In MTF, supports are concentrated here on 1D/3D/1W. This level defines LLs; if broken, bearish momentum increases. Previous lows play a supportive role, but lack of volume weakens them. Swing points, combined with fib retracement and trend lines, provide strong signals.

Bitcoin Correlation

BTC is at $68,861 with a 24h -2.35% drop in downtrend; Supertrend is bearish, rising dominance is pressuring altcoins. If BTC supports at $65,786/$62,155/$46,196 break, negative spillover to EIGEN accelerates $0.1681 test. If BTC resistances at $71,883/$77,310 are surpassed, an altcoin rally could come, potentially triggering EIGEN’s $0.2240 BOS. EIGEN is highly correlated with BTC; BTC downtrend continuation strengthens EIGEN’s LH/LL. BTC dominance caution mode: risk is high for altcoins.

Structural Outlook and Expectations

The overall structural outlook is bearish: LH/LL downtrend dominates, consolidation at $0.20 resistance. For CHoCH, monitor bullish $0.2240 BOS and bearish $0.1681 break. MTF resistance dominance supports downtrend continuation, and although RSI oversold may rebound, momentum is weak. Trend continuation or reversal? The current structure says continuation, but BTC recovery could bring change. Structure analysis prioritizes objective levels over emotional trading; swing points and BOS are key. In the long term, 1W’s 3R maintains bearish bias. Note: Markets are dynamic, regular MTF checks are essential.