EGLD, the native token of the MultiversX network is at a significant crossroads in terms of its price trend. In a recent post on X, Cryptorphic pointed out that EGLD has been trading in a volatile manner with the price unable to hold above crucial levels leading to concerns about short-term prospects among traders.
In a two-day timeframe analysis, EGLD faced a significant hurdle at the 50-day EMA which is a resistance zone. However, attempts to penetrate up were turned down and this pushed the cryptocurrency back to its current trading price of $28.8. This level is significant since it is a psychological and technical support level which EGLD must defend to avoid worsening of its trend.
EGLD is still in the attempt to consolidate around $28.8, the problem is that the trading volume is not sufficient enough. The price could decline further if volume does not rise higher as to assist in a bullish sentiment. This has created a lot of awareness among these investors and they are now keenly waiting for a shift of the trend.
The breakdown indicates $26 to be a crucial level of support for EGLD. This level also acts as invalidation point; if the price closes below $26, it may pull back towards the next significant support level of $22.4. This progression could be tremendous as it would reduce the current support and show that the market lacks confidence in it.
EGLD Bullish Breakout Hurdles
To make another bullish turn, EGLD needs to cross the 50 EMA, the last time it did was at October 2023. A successful break could lead to a rally where possible targets are $65 and $75. However, this scenario seems to be getting out of reach especially with the market not picking up in the way being expected.
The first level of resistance has been holding at 50 EMA while other support and possible resistance levels are $26 while the targets are $65-$75 for the bullish breakout. The adjusted invalidation point could be seen as breakdown and close below $22.4 that might lead to a continuation of the loss making trend in the subsequent periods.
Investors are encouraged to practice DYOR for themselves and approach the market with caution due to constantly shifting conditions. The next few days could define the direction of EGLD’s price movements given that it struggled to settle above these critical points.
