$EGLD Trade Setup 🔥
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$EGLD/USDT Weekly Chart Analysis
The price action of $EGLD against USDT has formed a Falling Wedge pattern on the weekly timeframe, which is traditionally a bullish reversal pattern.
A falling wedge occurs when price consolidates between downward-sloping trendlines, signaling a potential breakout to the upside. In this scenario, $EGLD has been compressing in value, forming lower highs and lower lows.
Bullish Case:
Breakout Potential: If the price breaks above the upper trendline, a bullish breakout could occur, targeting levels around the $50-52 range based on prior resistance.
Volume Spike: A noticeable increase in trading volume could validate the breakout, indicating a shift in market sentiment toward bullish momentum.
Trend Reversal: A confirmed breakout could potentially lead to a trend reversal, marking the end of the recent downtrend and sparking a rally.
Key levels to watch for a breakout confirmation include a strong close above the upper trendline and continued buying volume.
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