EGLD Technical Analysis: Failed Bearish Breakout Teases Bull Run
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The EGLD price action shows a declining trend leading to a descending triangle breakout with the $50 fallout. However, the lack of bullish follow-through highlights a bullish opportunity to rise above the $ 50 mark. So, should you consider taking an early bullish entry?
Key Points:
Source - TradingView
EGLD Technical Analysis
The EGLD price action displays the bearish breakout rally of the descending triangle pattern struggling to gain trend momentum. Hence, despite the fallout of the $50 support zone, the price trend shows a consolidation range with the bottom support at $45.
Currently, the price action shows higher price rejection in the daily candle, reflecting a temporary spike in selling pressure. In addition, the increase in trading volume supports the higher price rejection candles increasing the possibility of a bearish turnaround.
A high-wick rejection candle at the combined resistance indicates a higher possibility of price reversal. Thus, a bearish reversal from this barrier will continue the downward spiral and plunge the prices by 14.5% down to $41.7 support.
On a contrary note, if the market sentiment recovered, the coin buyers may breach this down-sloping trendline. Doing so will trigger a bullish upswing.
Technical Indicators
Despite an ongoing consolidation, a bullish crossover between the MACD and signal line indicates the buyers are quite active at below the $48 mark. Moreover, a bullish divergence in the RSI slope suggests improving market sentiment.
Therefore, the EGLD technical analysis shows a growing bullish inclination in the underlying sentiments.
Resistance Levels - $50 and $62
Support Levels - $45 and $41