In this new Monday analysis, we will take a look at EGLD, the project’s cryptocurrency MultiversX (formerly Elrond). These last few months have not been easy for this asset which has continued to fall, multiplying the failures on the technical levels. The upward trend experienced by the cryptocurrency market since the beginning of the year it has benefited EGLD but despite all this, is the decline definitely behind us? Without further ado, we’ll be taking to TradingView to identify technical levels to watch and bias to favor in the coming weeks.
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EGLD below an important technical threshold to resume
First of all, we can look at the situation of EGLD weekly take a step back on the evolution of the asset in recent months. Between June and November 2022, the cryptocurrency of MultiversX evolved over a range that included a lower bound at $45.2 and a resistance zone at $63/67. Furthermore, the 13 EMA also serves as resistance as you can see with the multiple rejections that have taken place over the past few months.
Currently, after a bearish breakout of tidy in question, ELD extension made a bearish pullback which turned the lower bound into a technical resistance that the price is currently trading below. At the confluence with the EMA 13, it is an important threshold that the asset needs to recover to prolong the bullish momentum by re-entering the old range.
For the moment, on a weekly scale, the technical configuration of EGLD leads us to have a rather bearish bias. If the asset registers a new bearish rejection on the EMA 13 and the buyers fail to take hold of the price, a new bearish leg could occur with the price returning to the low point at $32.30.
A powerful uptrend that can peter out quickly
From now on we will switch to the daily scale to have a more precise view the evolution of prices in the last few days. What should be noted is that after the resumption of an uptrend with the trio of EMAs, EGLD has made a bullish acceleration. However, it is currently slowing down in a technical zone at $42.15/$42.80. If EGLD resumes this technical level in confluence with the weekly 13 EMA, it will pave the way for a return of the price to the lower limit at $45.2 which is in confluence with the weekly MA 100.
If EGLD manages to push to the upside by frankly replenishing the range, there are numerous technical levels to watch and could lead the price to peak or resistance for a while. For now, in addition to the 200 EMA, we can identify three further technical levels located at:
EGLD underperforms Bitcoin
To complete our analysis of EGLD, we can analyze its situation against bitcoins to understand if it is outperforming or underperforming. Currently on a technical threshold at 1930 satoshis, the asset has broken a support at 2416 satoshis, which demonstrates the asset’s underperformance situation. This situation could be accentuated in the event that EGLD loses the 1930 satoshis.
It is interesting to analyze the situation of an asset as it is preferable to position yourself on it when you arrive outperform Bitcoin. The chances of establishing bullish performances would be greater, especially since in the event of a bullish push from the king of cryptocurrencies, the marginalization of the asset in question is less important.
Here we are at the end of this technical analysis of the EGLD cryptocurrency. Although the trend is bullish on a daily scale, the asset still remains under resistance on a daily and weekly scale. Furthermore, the asset is underperforming Bitcoin, which does not encourage positioning on the asset in the short to medium term. Therefore, given the current technical setup, the bias to have is rather bearish. However, if the uptrend continues and the range is replenished, the bias we currently have could evolve into a dominance of buyers over sellers.
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