In this new Wednesday crypto nugget, we are going to take a look at EGLDthe cryptocurrency of project MultiversX. For several weeks, the price of EGLD has been changing very slightly, is this a lack of market interest in this asset? In this analysis, the objective will be to identify the bias to have on the asset and the key levels to monitor that will allow us to be in a bullish or bearish bias.
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EGLD compresses between a pivot and a support
After having operated a rise up to $54.42, which made it possible to validate the second bullish objective and come close to the last objective of our previous analysis, the asset regained a bearish momentum which led it to re-enter the zone. pivot which is located at 45/46.60 dollars. As long as EGLD will continue to evolve below this levelthe chances of a new bearish leg will be more important for the next few weeks.
However, nothing is yet settled for buyers who, at the moment, manage to hold themselves rather well above the support at $39.43s. This is the level that must be maintained since a break below this level with a confirmed close would be a rather clear invalidation for buyers.
Since beginning of march, the price of EGLD evolved between its pivot and the support we have just mentioned. When it comes out, a new trend will take place with, probably, a powerful movement. In the event that EGLD drops below the current support, there will be very few weekly targets. Therefore, this will lead us to establish a lowered objectiver which corresponds to the low point at the end of 2023 at 32,37 dollars.
What are the levels to monitor?
On thedaily scale, we can notice that the bounces off the support are becoming weaker, indicating a lack of vigor on the buying side. In the event of a drop below this level, we can identify an intermediate level which is located at $36.20. This is a level that the price was struggling to pass at the beginning of 2023, but which allowed EGLD to rebound during the month of March. Therefore, it is rather relevant to have your eyes fixed on this level. If EGLD is made to fall below without showing buying strength, it will be a rather negative sign.
For the moment, as we mentioned above, nothing is decided yet. If the buyers react on the current level and they manage to push EGLD above the pivot, it will be rather good news for the coming weeks. Thus, in addition to a return on the resistance at 59 dollars, two objectives at 50 and 54 dollars can be considered.
Of course, to get there, the path will be strewn with resistance. The whole issue revolves around the pivot and the capacity, for EGLD, to succeed in freeing itself from it. Moreover, with a rising bitcoin dominance, altcoins do not benefit from the capital that largely goes to the king of cryptocurrencies. Thus, as long as bitcoin takes strength, it will be difficult to envisage a powerful rise on the side of altcoins.
Here we are at the end of this analysis of the EGLD cryptocurrency. For now, the price is sideways between the weekly pivot and its support. Although the momentum is not in favor of the buyers, it will be necessary to wait for an exit from this zone to confirm the bearish or bullish bias. In the current state of things, it is clear that it seems more appropriate to favor the bearish bias. A move below support will give further confirmation for this bias and will cause us to watch very closely the levels identified throughout the analysis.
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