MultiversX (EGLD) Price Could Increase 100% Upon Breaking Key Resistance
The price of MultiversX (EGLD) has broken above a long-term pattern. Although the upward momentum is being hindered by a horizontal resistance zone, technical indicators suggest it will break above this zone and rise higher.
The price of MultiversX (EGLD) broke above the long-term wedge pattern in the week from October 30 to November 5 with a large bullish candle. This indicates that the bulls have gained control.
Indeed, after 4 weeks consolidating above the channel, the EGLD price surged in the week from December 4 to 10, reaching the horizontal resistance zone at $70. This is the final horizontal resistance before the long-term trend transitions to an uptrend.
Although the price faced rejection from the resistance zone last week (red arrow), it has not retraced significantly and is currently forming another bullish candle. This suggests that the bulls are still buying on minor dips, anticipating higher highs.
The weekly RSI (Relative Strength Index) supports further upward movement as it approaches the overbought zone but has not formed any bearish divergence.
If a breakout occurs, the EGLD price could rise by 105.32% to the next significant resistance zone at $130, formed by the previous long-term support zone.
The daily chart shows EGLD has formed a bearish divergence (red line) after being rejected from the $70 resistance on December 12, indicating a potential correction.
However, instead of a sharp decline, the EGLD price flipped the previous horizontal resistance at $55 into support (green arrow) and formed a hidden bullish divergence (green line), signaling the continuation of the previous uptrend.
Therefore, EGLD price is likely to continue rising and break above the $70 resistance in the coming days.
The nearest horizontal resistance after the breakout is found at $87, which is 35.79% higher than the current price.
The most likely scenario suggests that EGLD price will break above the $70 resistance in the near future. The immediate target after the breakout is $87, with further potential to reach $130.
This bullish outlook would be invalidated if the EGLD price breaks below the $55 support zone on the daily time frame.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
- Lido DAO (LDO) Price: A Potential 70% Surge As History Looks Set To Repeat Itself
- Paxos Secures New York DFS Approval To Debut Stablecoin Products On Solana Blockchain