EIGEN Token Facing Sell-Off Pressure Amid Large Unlock

EIGEN's recent performance shows signs of weakness. The token dropped 4.28% over the last 24 hours, lagging behind the broader market which fell just 1.06%. Despite a positive momentum over the past week, near-term headwinds are building.

Two key factors are weighing on EIGEN right now. First, a substantial token unlock is flooding the market—36.8 million tokens worth roughly $14.4 million hitting circulation. That's classic unlock pressure playing out: fresh supply typically triggers selling from early holders and market makers hedging exposure.

Second, Bitcoin dominance has climbed to 59%, which tends to drain capital from altcoins. When BTC dominance runs this high, traders rotate funds back into the flagship asset, leaving projects like EIGEN vulnerable to outflows.

The combination creates a tough near-term setup. Traders watching EIGEN should monitor if support holds or if this dip extends further.