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- The $50 price level was the most concentrated with leveraged orders risking liquidation as price traded at $46 at the time of writing.
- An analyst eyes a 440% upside swing following a falling wedge pattern breakout.
Over the past two weeks, MultiversX (EGLD) has made considerable gains, breaking out from a falling wedge pattern on the weekly timeframe.
EGLD’s price breakout from the falling wedge pattern marked a significant shift in market sentiment. However, the question remains- Can EGLD maintain its upward momentum.
At press time, EGLD crypto price traded at $46.75, declining over 0.90% in the last 24 hours. Its market cap was $1.29 Billion, trading volume dropped 9% which depicts lower selling pressure.
Why Analysts Are Making Bold Bets for EGLD
The recent price surge in EGLD crypto has left analysts betting big on the altcoin’s futures. Famous crypto analyst ZAYK Charts has suggested an 440% upswing.
In his analysis, ZAYK cited EGLD’s breakout from a falling wedge pattern on a weekly timeframe.
According to the analyst, a breakout from this level will result in a 440% surge. This will drive EGLD’s price to $200 in the coming weeks.
Despite a weekly decline of over 7% in the form of a retest or pullback, the breakout’s bullish wave was intact and an upsurge is imminent.
In context, a breakout to the upside indicates that selling pressure is diminishing and the buying pressure could fuel the price higher. This signals trend reversal from bearish to bullish, thus establishing a higher probability of the price rally.
Likewise, crypto analyst Lucky said that EGLD’s upward movement was intact and that there was further room for upside movement. Since its breakout from the falling wedge last month, it gave a one-way upside move within the 3rd rising Elliott wave.
Meanwhile, a minor 4th retracement wave was on the cards. Afterward, a 5th rising wave could push EGLD price toward the $100 mark in the coming weeks.
What EGLD Charts Suggest
Following a falling wedge pattern breakout on the weekly timeframe, a golden crossover of the 20 day EMA and 50 day EMA was exhibited, signaling a potential trend reversal.
The Relative Strength Index (RSI) had a value of 55 conveying neutral indications and suggesting further room for upward movement.
However, the Average Directional Index (ADX) line dropped to 36, depicting a decline in the buying momentum. Consequently, there was a price pullback of 12% this week.
The liquidation heatmap showed that the $50-$55 region held a sizable amount of liquidation levels. It is likely that EGLD prices would be attracted to this region before a significant move.
A move beyond $55 and a retest of $58 in the coming days can trigger a short squeeze in the coming days.
Moreover, MultiversX’s funding rate aggregated by asset remained positive within the past few days. At press time, it was at 0.0124%, reflecting growing bullish sentiment in the derivatives market, driven by a rise in open interest of over 2.30%.
If the daily close is above the $50 mark, EGLD crypto could rise to $55 and $58 levels. Conversely, a break below the $42 mark could lead the altcoin toward $35 in the coming days.
Disclaimer
This article is for informational purposes only and provides no 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.
