MultiversX (EGLD) Faces Pressure Near Demand Zone: Can Bulls Prevail

The MultiversX (EGLD) token is struggling to maintain the increase near the demand zone amid the broader market volatility.

A rounding top formation was exhibited, and the EGLD token delivered a fake breakdown in yesterday’s session. It inched closer to its make-or-break region of $26.

In early July, EGLD tried to cross the cluster near the 100-day EMA mark but failed and faced a sharp rejection. That led to a decline of over 30% in the last two weeks.

The ongoing price action mirrored the sellers’ dominance, and the token continued to underperform. Trading below the key moving averages, the EGLD token formed a falling wedge pattern and was on the edge of its crucial pivot near $25.

Once the cluster breaches, a next bearish leg toward the $20 followed by the $18 mark can be seen.

However, a rejection wick candlestick was spotted, and a significant price rise was noted during the intraday session. It means that buyers are trying their best to prevent the breakdown.

MultiversX Token Price at Press Time

At press time, MultiversX was trading at $26.56, up over 11%. It noted a bullish recovery in the intraday session. Meanwhile, the trading volume noted a drop of over 22%, meaning the traders lacked buying interest.

Regarding the market cap, EGLD was ranked 83rd with a market cap of $723.85 Million. Its total supply at press time was 27.27 Million.

EGLD Price Action Outlook & On-Chain Analysis

The EGLD price was capped inside a falling wedge for the last three months, which formed multiple lower-low swings. Despite the gradual decline, the token has reached its make-or-break region and is trying to prevent the cluster of $25.

Amidst the intraday price surge of over 11%, the short-term price projection delivered a bearish bias, and the lack of volume buying conveyed a concern.

Buyers may overcome gains if the token grabs the 20-day EMA mark near $30.

The Daily RSI curve showed an uptick and revived from the oversold region. It noted a reading of 26, signaling a minor pullback ahead.

@X_WayDYOR tweeted that EGLD has formed a double bottom formation in a weekly timeframe and could begin to accumulate soon.

Are you guys ready for $EGLD revolution?

Time to buy @MultiversX 22$ is a blessing

Double bottom weekly

Oversold on RSI

Double bullish divergence on weekly bullish charts

Bull against #BTC, #SOL, #ETH 🦁🧠

BEST TECH IN THE WORLD 💥🔥🔥🔥 pic.twitter.com/UecnNSmdN4

— Lu𝕏aWay (@X_WayDYOR) August 5, 2024

Despite the ongoing bearish market sentiment, if EGLD succeeds in holding the $25 mark, a significant bullish recovery can be seen toward the upside mark of $35 ahead.

Per the Fibonacci retracement levels, buyers may find suitable support at $25, $20, and $18.

Social Dominance and Development Data Overview

Amidst the price decline, the media buzz for MultiversX saw a tremendous dip and dived toward the negative region, showcasing a decline in the investors’ chatter on the media platforms.

The development activity data noted a consistent downtick, dropping over 12% to the 169 mark this week. Moreover, no significant growth activity was noted.

Futures Open Interest Data Saw an Uptick

After a consistent price decline, buyers found a significant accumulation zone and began accumulating by making fresh longs in the past 24 hours.

Open Interest Data Source: Coinglass

The EGLD token’s Futures Open Interest data rose over 5.30% to $18.13 Million overnight and noted fresh long additions.

Similarly, the funding rate went positively and retained the positive region, noting around 0.018% at press time.

The immediate support of EGLD was around $25 and $20 levels, while the resistance zone was around $30 and $32 levels.

Source