EGLD Technical Analysis: Rising Channel Prepares $100 Breakout

Key technical points:

Past Performance of EGLD

As mentioned in our previous analysis, EGLD prices break under the crucial descending support trendline resulting in a fall to $120 on that very day. However, the price returned from $120 to retest the broken trendline upon which the post-retest reversal broke the psychological level of $100. Nonetheless, the buyers stepping in at $75 bring back favorable inflation rates with a rising channel pattern.

Source-Tradingview

EGLD Technical Analysis 

The rising channel pattern maintains the uptrend in EGLD prices and teases the $100 breakout. Late traders can expect this breakout rally to reach the height of $120 at least.

Last week, the phenomenal increase in supply brought significant change in the crucial EMAs (50, 100, and 200-days), increasing the bearish spread. 

The remarkable ongoing uptrend in RSI values starting from the oversold territory surpasses the halfway lines and approaches the overbought territory. Moreover, the lack of bearish increases the chances of a prolonged uptrend.

The DI lines of the DMI indicator reflect a bullish crossover as the ADX line struggles to increase, reflecting a bullish trend struggling to find momentum. However, with the breakout of $100, traders can expect the rally to increase trend momentum.

In short, the EGLD technical analysis depicts an increased possibility of a $100 breakout.

Upcoming Trend

Presuming the buying pressure sustains, EGLD price can shortly surpass the psychological barrier of $100 to reach the $120 mark. However, the 100–day EMA and the broken support trendline can play a bearish role in opposing the uptrend. 

Support Levels: $90 and $75

Resistance Levels: $100 and $120