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- EGLD price is currently trading at $40.10 while recording a 16% drop in its 24-hour trading volume.
- EGLD price fell by 2.26% in the last 24 hours.
After breaking its bullish trend with the predicted fall, EGLD price started consolidating. Although the consolidation is being made under the 200 EMA and the price is consistently taking resistance from its 100 EMA, it will have to face some critical resistance levels to make a breakout.
The price is getting consistent support from the $40 which suggests that the buyers are interested in supporting the price; but, will this support be enough to help EGLD price in crossing its resistance levels?
EGLD Price is Trading Within a Parallel Range on the (1-Day Timeframe)
According to a previous analysis given by our analysts, it was suggested that EGLD price can cross below the $44 level making a bearish correction of 18%. The price was trading around its major support level of around 100 EMA at $44.00. The RSI made a negative crossover below the median line. Therefore, our analysts predicted that the EGLD price may take a bearish correction.
This was proven correct: following a bearish candle the price gave a downturn of 18%. The reason for this analysis was that the EGLD price was trading below 200 EMA with bearish movements around 100 EMA. On the other hand, the RSI line was making a bearish divergence which is a powerful indicator of a trend reversal.
Technical Analysis (1-Day Timeframe )
The RSI line is moving with the price action under the 14 SMA near the median line. The current value of the RSI is 43.17 points whereas the 14 SMA is trading at 46.60 points. The RSI line is making the lower high and lower low pattern which indicates that the price could continue to make a bearish movement in the future.
Conclusion
According to our analysts, the price is currently moving in a bearish trend. This may continue for a few more weeks as the price is facing multiple resistance levels and the technical indicators also indicate a bearish trend. The price is consolidating under the 100 EMA and the oscillators are making a downward divergence.
Technical levels –
Support -$40.00
Resistance – $44.00 and $50.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
