After facing rejection from $37.50, MultiversX (EGLD) price has witnessed a strong decline and shattered the $29 support level. The cryptocurrency price saw a surge during the middle of June but as the price reached near $37.50, the bullish move was halted.
Recently, EGLD price formed support at $25 after breaking $29 and attempted to retest $29 but could not rise above $26.50. The price again faced strong rejection which induced a negative sentiment in the market.
Currently, the asset price has broken the support level of $25 and has melted more than 9% since the start of September. The previous candle closed as a strong bearish candle and the current candle has already broken the low of the previous candle.
If the bearish momentum continues, the price might head down toward the next support level of $22 and potentially toward the $20 psychological level. On the other hand, if bulls enter the market to protect the price and is successful in forming support, the price might retest $25.
Network Activity of MultiversX
The daily active addresses of MultiversX have dropped more than 50% in the last six months, reaching 9074. The daily active addresses peaked on 8 February, stretching to 85,870 since then there has been a significant downfall. The daily transactions have dropped 15.6% (year-to-date), reaching to 47,701. In the past 30 days, there has been a decline of 21.4%.
The total value locked has dropped by 14.8% in the last 30 days, amounting to $83 million. TVL is a metric used to judge interest in the decentralized finance protocol. A drop in TVL indicates that the users are losing confidence in the protocol.
The market capitalization has declined by 4.71% to $589,418,114 at the time of writing. The 24-hour trading volume has increased by 16.14%.
Will EGLD Price Fall to $20?
The cryptocurrency price has slipped below 20,50,100 and 200-day exponential moving averages, indicating strong bearish momentum. The relative strength index has entered into oversold and currently trades at 20.64, suggesting a chance of short-term pullback.
EGLD price has not shown any signs regarding the presence of bulls. The price might consolidate before making any upward move as the bearish momentum is strong.
The Chaikin money flow (CMF) score is showing divergence with price action as it trades above the 0 mark, indicating slight strength in the market. The long-short ratio is 0.89 with 47.24% longs and 52.76% shorts, suggesting a higher position of the seller in the last 24 hours.
Conclusion
The market structure and price action of MultiversX have been highly bearish for the past two days. EGLD price needs to form strong support for regaining bullish momentum.
Technical Levels
- Major support: $22 and $20
- Major resistance: $26.50 and $25
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.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/09/11/multiversx-price-prediction-will-egld-price-drop-to-20-level/