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EIGEN Whales Cash Out Amid Price Drop Ahead Of Token Unlock
In a recent tweet, it was reported that whales and institutional investors have begun to cash out their $EIGEN tokens, amidst a steep price drop. This development comes just ahead of the token unlock scheduled for December 24.
As noted in the report, these large-scale holders initially invested $32.45 million USDC across 21 addresses to purchase an astonishing 8.917 million $EIGEN tokens at an average price of $3.64 each back in October. However, their strategy appears to have shifted in recent days as they take advantage of the token’s sharp decline.
In a remarkable turn of events, four significant addresses have collectively redeemed an impressive 1,270,507 $EIGEN (valued at $5.02 million) from the EigenLayer staking contract. These tokens are then being sold on-chain for ETH or USDC, further exacerbating the selling pressure on the token.
It’s worth noting that just a few days ago, $EIGEN reached an all-time high of $5.60, enabling these large holders to secure profits of a staggering $17.65 million on their initial 8.917 million tokens. However, the token has since plummeted, hovering precariously close to its original cost price of $3.64.
The impending token unlock scheduled for December 24 is likely to introduce additional selling pressure, a phenomenon that’s been observed in other newly launched tokens such as $ENA and $MOCA. This event could spark increased volatility and potentially significant price drops.
While it’s not uncommon for token unlocks to result in declines, it’s essential to acknowledge that some market makers have managed to defy expectations and sustain or even push prices higher, as seen with $APT.
As a result, $EIGEN holders should prepare themselves for potential turbulence while closely monitoring the market activity during this critical period. Understanding market dynamics and whale behavior remains crucial for navigating this highly volatile asset.
In conclusion, the recent cash-out decision by whales and institutional investors serves as a warning to smaller investors to exercise extreme caution in their investment decisions.
Source: nulltx.com
