EIGEN jumps 15% after unlock drop – Has supply already been absorbed?

EigenCloud [EIGEN] stood among the day’s top gainers, climbing 15% as trading volume rose 47%. The breakout followed a sharp drop from $0.17 to $0.15 after the 2nd of April token unlock. That raised a simple question. Has the added supply already been absorbed? What's driving EIGEN's price? The move did not happen in isolation. It came alongside a broader altcoin recovery over the past few sessions. Token Terminal data showed rising activity on the EigenCloud network. Fees crossed $48K in the last 24 hours, pushing weekly revenue to $112K. Nearly half of that weekly total came in a single day. That spike aligned closely with the 15% price move. On top of that, user activity picked up sharply. Daily Active Users jumped from 36 to 95 in two days, a 2.6x rise. Weekly users reached 367. This kind of activity usually reflects growing participation, which tends to support short-term price strength. Is a continuation or snap-back next? On the charts, EigenCloud [EIGEN] rallied from $0.15 to $0.187 in three days, a 24% move. That recovery hinted that the unlock-related selling pressure may have faded. For nearly two weeks, the price moved sideways, forming an inverted head-and-shoulders pattern. The breakout above the neckline triggered the surge. Even so, the pace now looks slower. A pullback toward the neckline near $0.17 remains possible. That level also aligns with the 50% Fibonacci Retracement. The Chaikin Money Flow (CMF), whose reading was 0.22, suggested consistent capital inflow. The MACD confirmed the capital came from buyers, as the green histogram bars were expanding. Therefore, in case of continuation, the next target is set at $0.20, which, if broken, would shift the market structure to be bullish on the daily chart. Liquidity accelerates EIGEN's uptrend Meanwhile, liquidity played a key role in this daily surge. Over the past week, orders have been building in the usual reversal pattern mentioned earlier. Every liquidation of the dense clusters resulted in a price spike. Notably, the most significant event was a short squeeze of thousands of USD worth of EIGEN between $0.16 and $0.17, which led to the breakout. Right now, a few orders are forming above the price while more liquidity is gathering below $0.18. This could suggest a snapback as traders bet more on a correction. Therefore, traders should watch how prices react around these liquidity clusters to determine if the EIGEN price will continue to rally or correct. Final Summary EIGEN’s 15% surge aligned with a sharp rise in trading volume and renewed altcoin momentum Nearly half of the week’s network fees were generated in one day, reinforcing the price breakout