The cryptocurrency market is always full of surprises, and EGLD (MultiversX) is no exception. After a promising upward movement earlier in the week, EGLD now finds itself in a downtrend, sitting at $28.81 at the time of writing. While the market sentiment might seem bearish, this could be a pivotal moment for both short-term traders and long-term investors. Letâs break down the technicals and see what the chart is telling us. đđĄ
The most obvious thing on the 30-minute chart is that EGLD is struggling to break above resistance levels, with $29.72 (the 99-period SMA) acting as a significant hurdle. However, support near $28.50 has held steady so far, leaving traders in a bit of limbo as the price consolidates between these key levels.
Key Support and Resistance Levels
Currently, EGLD is just below its 7-period SMA at $28.99, a short-term barrier thatâs been tough to break. Above that, the 25-period SMA is slightly higher at $29.10, forming another minor resistance level. Traders looking for bullish momentum need to watch for a breakthrough of these levels.
On the flip side, support lies around $28.50, which is crucial for avoiding a deeper pullback. A break below this could take EGLD to the next major support level around $28.00.
MACD on the 30-minute chart shows bearish sentiment, with the MACD line at -0.11 and the signal line at -0.10, indicating selling pressure. However, the histogram is starting to flatten, suggesting that bearish momentum might be losing steam. If we see a bullish cross in the MACD lines, that could signal a potential reversal.
Volume has been moderate, with SMA 9 volume sitting at 1.905K, not signaling any major shift in market sentiment yet. Low volume often means consolidation, but a surge in either direction could provide more clarity.
Market News and Sentiment
MultiversX, the platform behind EGLD, continues to gain attention for its ambitious goals in the blockchain space. However, like most altcoins, EGLDâs price is heavily influenced by Bitcoinâs price movement and overall market sentiment. With BTC facing its own resistance levels, EGLDâs short-term fate could be tied to Bitcoinâs ability to either break out or consolidate further.
Also, EGLD has faced some pressure from the broader macroeconomic environment. Rising inflation and global market uncertainty have caused investors to shy away from riskier assets, including cryptocurrencies. As such, EGLDâs price action might remain subdued unless we see positive news or bullish sentiment returning to the crypto market.
Trading Strategy: How to Approach EGLD Now
For short-term traders, EGLDâs current consolidation phase presents both risks and opportunities. If youâre a day trader or swing trader, keep a close eye on the $29.10 resistance level. A breakout here could open the door to retesting $29.50 and even $30.00. However, if EGLD fails to maintain support at $28.50, be prepared for a dip to $28.00 or lower.
If youâre considering opening a position, a tight stop-loss below $28.50 could help manage risk in case the price moves against you.
For long-term investors, this could be an excellent time to accumulate more EGLD. The coin is trading near a key support zone, and if you believe in the long-term potential of MultiversX, buying at these levels could offer solid returns down the road. However, itâs always wise to average in rather than go all-in, especially in a volatile market like crypto.
Final Thoughts: Consolidation or Correction?
EGLD is currently stuck in a consolidation phase, and the next few hours or days will be crucial in determining whether itâs heading for a rebound or deeper correction. A break above $29.10 would signal bullish momentum, while a fall below $28.50 could lead to further downside.
What do you think? Are you holding on for a breakout, or do you see more downside ahead for EGLD? Let me know in the comments below! And donât forget to subscribe for more updates on your favorite cryptos. đŹđ
