Why Could The EGLD Price Potentially Double From Its CMP?

• The EGLD price was down by 95% from its all-time high price.
• The MultiversX price was outperformed by 74% of the top 100 crypto assets in the last 1 year.

The MultiversX (EGLD) price traded in green for 16 days in the last 30 days. The token’s price traded flat over the last 1 year, resulting in a slight decline of 0.6%.

MultiversX was one of the top 100 crypto assets globally, making it the 83rd largest cryptocurrency. The token’s market cap was worth $669.922M, witnessing a decline of 5.2% in the last 24 hours.

The MultiversX token value further advanced by 13.8% in the last 24 hours from the press time. This led to a traded value of $15.844M, which was just 2.37% of its market cap. It showed a lower liquidity in the token price.

The token’s market cap dominance was 0.03%, and its price was highly volatile, resulting in 5.55%. The MultiversX price sentiment was bearish, and the fear and greed index was at 22. This showed extreme fear among the token’s investors.

The token’s Total Value Locked declined to $90.54M in the last few months. This was followed by a stablecoins market cap value of $13.87M. At press time, 3.832M addresses were holding the MultiverseX token.

What Does MultiversX Token’s Liquidation Activity Indicate About Token?

The MultiversX token’s open interest witnessed a slight increase of 1.5% in the previous 24 hours from press time. This resulted in an open interest value of $17.74M.

The token’s liquidation chart further showed a decline in the liquidation activity. The token witnessed a long liquidation of $8.57K, against which the shorts worth $3.81K were liquidated.

This supported the seller’s dominance in the price, and the value of the derivatives traded volume also advanced by 9.8%.

The token’s derivatives traded volume value was $25.99M. Also, the token’s long/short ratio was 0.9376.

Will the EGLD Price Break Above The Falling Wedge And Lead To Higher Levels?

The EGLD price has steadily decreased over the past four months. It led to a significant price decline and fostered a bearish sentiment among traders. This prolonged downward movement has pushed the token to notable lows, signaling continued weakness in the market.

In mid-March 2024, EGLD price formed a swing high at $80.85. Since that peak, the token has consistently declined, marking a strong downtrend with lower lows established.

Recently, the MultiversX price has been trading within a falling wedge pattern, touching the lower band of this formation. This pattern often indicates a potential reversal if certain conditions are met.

Suppose the token price rebounds from this level and breaks above the falling wedge. If this happens, it could signal the start of a strong upward move, offering hope for a significant price surge shortly.

Let’s Take A Look At EGLD Token’s Technical Indicators

The EGLD price has been exhibiting a strong downtrend, with the 50-day and 200-day EMAs trading in a prolonged death cross. This bearish crossover further pushed the token’s price below these key moving averages, reinforcing the negative sentiment in the market.

EGLD/USD Chart by TradingView.com

The MACD and signal lines also formed a death cross, moving into negative territory. This decline was accompanied by bearish histograms on the chart, signaling a continuation of the downward momentum.

The RSI indicator further reflected the bearish trend, dropping below the 14-day SMA and reaching the oversold zone. This suggests the selling pressure remains strong, with no immediate signs of reversal.

Regarding key levels, the EGLD token may find support at $18.00 and $22.00. On the upside, resistance levels are projected at $45.00 and $57.00. These levels could act as significant barriers if the MultiversX price attempts a recovery.

Disclaimer

This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.