TradeCityPro | EGLD: Navigating MultiversX's Market Dynamics

👋 Welcome to TradeCityPro!
In this analysis, I want to examine the EGLD coin for you. This coin is part of the MultiversX project, which is a Layer 1 blockchain active in the fields of DeFi and the metaverse.

📅 Weekly Time Frame
In the weekly timeframe, we are observing a bearish trend that began after the 2021 bull run. After the price reached its all-time high (ATH) at 429.83, the market's downward phase started.

🔍 Currently, the price is near a crucial support at 22.23, and in this candlestick, it's closing below this level for the first time after several attempts. This area also serves as the base of the consolidation zone, and for us to maintain hope for an uptrend, the price should not settle below this level, because then there is no significant support until 7.46.

🔑 There's a hidden trend line in the chart that used to act as resistance and is now serving as support, preventing further price drops in this candlestick.

📊 The market's selling volume is increasing, indicating a greater inclination for further declines. The RSI has recently broken below 50, introducing bearish momentum into the market.

📈 If buying volume re-enters the market and the price can return above the consolidation box, and if it breaks above the box's upper boundary, the price could begin an uptrend. In such a scenario, the primary resistance levels will be 125.86, 197.30, and 429.83.

⏳ 4-Hour Time Frame

🧩 In the daily timeframe, I didn't see anything special, so I'm moving directly to the 4-hour timeframe to identify potential futures triggers.

✨ As seen, in the last bearish leg, the price moved to a support at 20.72, forming a base there, and is currently correcting from this trend. If the support at 20.72 breaks, we could witness the next downward leg.

📉 The target for this downward movement could be around the Fibonacci extension 1 area, which is located approximately at 16.34. The RSI entering the Overbuy zone could increase the likelihood of reaching this target.

🔼 For a long position, the first trigger would be 24.63, but given the bearish momentum currently seen in the market, it would be prudent to wait until the price reaches and goes above the SMA99. If the price remains above this average, the bearish momentum may decrease, making it logical to open a long position. The significant resistances in this long position would be 26.71 and 29.83.A breakout of 43.88 in the RSI could serve as a momentum entry confirmation for this position.



📝 Final Thoughts

This analysis reflects our opinions and is not financial advice.

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