EGLD price entered in an uptrend during mid-June 2023, rising from the low of $29 and creating a high of $38.09. On 20 July 2023, the cryptocurrency price broke the uptrend and fell below the trend line.
Recently, MultiversX price was successful in breaking the low of $29 and melting further down. The price faced strong rejection from $24 on 17 August 2023, leaving a long wick to the downside. After the rejection, EGLD’s price retested the $28 level and fell further down.
The previous candle closed bullish and created support at $26. The current candle has not shown any major moves till now. If the current candle can break the high of the previous candle, then the price might head toward the resistance level of $28.
On the other hand, if bears take control and push the price below $26, it might fill the lower wick of the 17th August candle and potentially fall toward $21.50. Traders should wait for a candle to close below $26 for slight confirmation.
MultiversX Network Activity
The daily active addresses of MultiversX peaked on 20 July 2023, reaching 32,370. Since then, there has been a strong downfall. The daily active addresses have declined to 9,640 and in the last three months, there has been a decline of 26.5%.
The daily transactions have also declined below 100,000 since 21 July, reaching 56,670. The daily transactions have been hovering near 50,000 since the start of August.
However, the total value locked (TVL) witnessed a surge between 18 and 19 July 2023 rising from $54.45 Million to $97.91 Million. There has been an increase of 64.3% in the past three months reaching $87.3 Million.
Will the EGLD Price Melt to $21.50?
The cryptocurrency price has melted below 20, 50, 100, and 200-day exponential moving averages, indicating bearish momentum. Chaikin money flow (CMF) has been trading below the 0 mark since 21 July 2023, indicating the confluence of bears. The current CMF score is -0.04 implying slight weakness in the market.
The relative strength index has entered into an oversold zone and currently trades at 26.55 suggesting the possibility of short-term pullback. The Bollinger bands have expanded indicating an increase in volatility. The long/short ratio is 0.56 with 36.13% longs and 63.87% shorts indicating strong pressure from the selling side in the last 24 hours.
Conclusion
The market structure and price action of MultiversX are strongly bearish after the break of the uptrend. Technical parameters also indicate bearish momentum and chances of a $26 support level break.
Technical Levels
- Major support: $26 and $21.50
- Major resistance: $28 and $37.50
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. 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 his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/08/24/multiversx-price-prediction-egld-price-continues-dropping/