HomeCrypto NewsEGLD is gradually falling towards $30, will it be able to rebound?...

EGLD is gradually falling towards $30, will it be able to rebound? Crypto analysis

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In this new crypto trend, our Wednesday appointment To analyze an altcoin, we will focus on the EGLD cryptocurrency, selected by the community through a survey, which took place the day before on our social networks. Having vaguely resumed the upward path during the end of 2023, these last weeks seem to be more complicated for the class. Without further ado, let’s head to TradingView to perform a technical analysis of the price.

EGLD on support, buyers need to get back in force ASAP

EGLD price against the dollar on the"weekly scale
EGLD price against the dollar on the weekly scale

After one particularly widespread decline over the year 2023, causing EGLD to fall until 23 dollarsthe price made a particularly powerful bullish leg, which allowed it to temporarily regain the 70 dollars. However, as mentioned in the introduction, these last few weeks have been rather complicated for buyers, who have been put in difficulty on the resistance zone represented in red. Falling below the pivot at $50, EGLD now finds itself on a support zone at 37/39 dollars (old resistance).

For the next few weeks, if you have a bullish bias on the asset during the year 2024, the rebound should take place as soon as possible, which will allow the asset to return towards the pivot current. However, after several rebound attempts, the support zone seems to be weakening and could lead, at the slightest bearish break, to a new bearish leg towards 23 dollars. Unfortunately, although we are on support, the bias will remain bearish on EGLD as long as the asset is unable to regain its pivot.

A recovery in this area, shown in blue, would be an opportunity for buyers to Take the hand in the market and lead EGLD to greater heights. However, for the asset to achieve this, there is no magic recipe, bitcoin and ethereum will also have to start again. risewhich will allow EGLD to benefit from a favorable environment for altcoins.

An asset in the midst of a period of lateralization

EGLD price against the dollar on the H4 time unit EGLD price against the dollar on the H4 time unit
EGLD price against the dollar on the H4 time unit

When we focus the analysis on a smallest unit of timewe can realize that the asset is in full period of lateralization between $37 (previously identified support zone) and $45 since April. Buyers are currently fighting to avoid a downward exit from the range (this can be seen through the multiple strands under 37 dollars). Although they are succeeding at the moment, it cannot last forever.

To achieve a strong recovery of EGLD and bring it on the upward path, it is necessary, in addition to the upper limit of the range at $45, to monitor two key thresholds:

  • The 40 dollars, corresponding to Point of Control H4. If you are new to these concepts arising from the use of the Volume Profile, I invite you to consult our guide on the subject.
  • 44 dollars, a resistance threshold corresponding to the Value Area High Volume Profile

So that buyers can regain confidence on larger time scales (daily and weekly), the change in trend will initially take place on time units H1, H4 or H12. Thus, by monitoring the dynamics of EGLD in H4, you will be able to anticipate before a majority of players a continuation of the trend or a reversal which could prove more lasting.

This analysis of EGLD brings us to a conclusion negative. The asset is in difficulty, this can be seen both on the weekly time unit or H4. The buyers struggle to push assets on higher levels. Obviously, this concerns a large majority of altcoins in the ecosystem, unable to attract liquidity to face the sales pressure, particularly strong for several weeks. However, you have in your hands all the technical thresholds to watch to make your choices and establish your personal bias for the coming months. In any case, buyers will have to come forward as quickly as possible with a resumption of 45 and 50 dollars, which will allow EGLD to regain color and get back on the path to 70 dollars.

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