MultiversX (EGLD) breaks out of a six-month downtrendMultiversX (EGLD) is breaking out of a six-month downtrend, with three subsequent lower highs since its $77.9 peak in March. The breakout occurred on September 27 and EGLDUSD now tests the R/S downtrend line in what could be a corrective move before the confirmation and bounce up.
I'm looking at the daily chart here, looking for a mid-term trend shift validation.
However, lower time frames, like the 4-hour chart, already hint of a successful break out, with the line holding strong after some testings.
Here is what we see when zooming in:
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Inside the downtrend formation, EGLD started a shortish-term uptrend, making higher lows until the higher time frame breakout. Then, it tested the downtrend line as support in four 4-hour candlesticks. Giving strength to the move.
Validation here is a daily close above the line.
I'll then target the S/R ZONE between $37 and $48.
Play safe!
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Despite the price action, MultiversX is one of the most-solid cryptocurrencies from a fundamental perspective. It has one of the most scalable infrastructures through sharding, being the first to fully implement sharding in a battle-tested environment. The chain has 100% uptime and very high security standards, like using native assets and implementing Guardian for a 2FA onchain extra security. The token, eGold (EGLD), has a fixed maximum supply of 31.4 million, with a fully dilution schedule by 2030. However, it can be even lower, as fees can replace emission if the chain is used enough. DYOR.
