MultiversX (EGLD) Falling Wedge Alert
MultiversX is showing a classic falling wedge pattern on the daily chart, a bullish reversal setup that suggests a potential breakout to the upside. Over the next year, swing targets point towards the previous all-time high (ATH) range of $500-$600, offering a long-term bullish opportunity for traders.
Key Technical Highlights:
Pattern: Falling Wedge (Bullish)
Current Price: ~$25-$30
Breakout Target: $80-$120 (Initial swing target based on wedge height)
Long-Term Target: $500-$600 (Previous ATH from 2021)
Time Frame: 12 months (swing trade target)
Why this setup looks strong:
Converging Price Action: Price action is tightening, with lower highs and lower lows inside the wedge, suggesting that a breakout is likely imminent.
Volume Decline: A typical feature of falling wedges is decreasing volume, indicating consolidation before a potential breakout.
RSI Divergence: RSI shows bullish divergence, adding strength to the argument that sellers are losing momentum.
Strategy:
Entry: Consider entering on a confirmed breakout above $35-$40 with strong volume.
Stop Loss: Set below $20 for risk management in case of a failed breakout.
Targets:
Short-term: $80-$120 (based on wedge height)
Long-term: $500-$600 (previous ATH in late 2021)
This setup presents a promising risk/reward ratio for long-term investors looking to swing trade MultiversX. Keep an eye on key breakout levels and confirmation signals.
This is not financial advice. Always perform your own research and trade responsibly.
Key Technical Highlights:
Pattern: Falling Wedge (Bullish)
Current Price: ~$25-$30
Breakout Target: $80-$120 (Initial swing target based on wedge height)
Long-Term Target: $500-$600 (Previous ATH from 2021)
Time Frame: 12 months (swing trade target)
Why this setup looks strong:
Converging Price Action: Price action is tightening, with lower highs and lower lows inside the wedge, suggesting that a breakout is likely imminent.
Volume Decline: A typical feature of falling wedges is decreasing volume, indicating consolidation before a potential breakout.
RSI Divergence: RSI shows bullish divergence, adding strength to the argument that sellers are losing momentum.
Strategy:
Entry: Consider entering on a confirmed breakout above $35-$40 with strong volume.
Stop Loss: Set below $20 for risk management in case of a failed breakout.
Targets:
Short-term: $80-$120 (based on wedge height)
Long-term: $500-$600 (previous ATH in late 2021)
This setup presents a promising risk/reward ratio for long-term investors looking to swing trade MultiversX. Keep an eye on key breakout levels and confirmation signals.
This is not financial advice. Always perform your own research and trade responsibly.
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Linktree: linktr.ee/swingtradepros
Website: swingtradepros.com
Discord: discord.gg/swingtradepros
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