Recent events in the cryptocurrency market and issues that have arisen inMayar decentralized exchange There was not much help for the price of the EGLD cryptocurrency. The community is stronger than ever, a new launch pad is imminent and the team continues to communicate and operate amid the indifference of a bear market. However, for now, the most bullish investors are facing a wall of sellers determined to maintain the current momentum. In the Crypto Nugget news on Wednesday, let’s take a look at the charts of the EGLD asset to determine the path the price will take over the next few weeks.
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Complex setting on a weekly scale
After high all the time 544 In dollars, EGLD entered a strong downtrend as it easily breached its technical support. The first area was that 200 dollar. Resistance then support For a few weeks, it became resistance again by preventing the price, twice, from resuming the uptrend. Thus, the accelerated downward trendTechnical fields were of little use. The price is currently around $40, which is in the “blank” on a weekly scale.
The next major area is now sitting at $28. A weekly technical level is more important on a daily basis, which we will see later. Prior to this level, EGLD no longer had any major areas with which it could interact. Thus, it does not seem wise to get involved in bullish or bearish markets if you are not an experienced trader. Additionally, what will happen if the area loses with a close below $21.65 (the bottom of the gray area)? The new downside target could be around $10.
However, we haven’t gotten there yet. Will buyers come forward to try and reintegrate support above $66? Will the latter fail to reject the price on this area? The next few days will be important, dictated by the macroeconomic situation and the Federal Open Market Committee tonight. Right now, on a weekly scale, you need to keep the two weekly areas in mind to analyze the reaction when the price is there.
Temporary buying power on EGLD?
On a daily basis, price movements are more detailed. This allows us to improve Understand the price structure. Price is currently reacting to January 2021 resistance. Is this an appropriate low? Temporary shortness of breath for sellers before the start of a new descending wave? If the bullish scenario starts to pay off, there is Two areas of observation : first of $54, a technical level at which buyers have reacted in the past. Here, will the price be kept below this level by the sellers? In case of a bullish breakout, the second level will be the support area at $66.
However, we have to be careful. Resumption $54 It will not automatically yield a return of $66. The sellers are always on the alert and they don’t seem stressed out in any way. Conversely, what would happen if the price closed down $37, Technical level for the beginning of 2021? There will be a continuation of the downtrend with a return first to the top of the weekly technical zone at $28. It is very likely that we will see a price structure forming if it reaches this area.
But then, what if sellers continue to put pressure on the EGLD price? Like I told you, we’ll have to watch $10.28. But before that, we had a previous daily resistance at $13.91 as of the end of 2020. It could act as a technical area for buyers. Of course, again, there is nothing absolute in the cryptocurrency market. We may not have the opportunity to review these levels. However, it seems important to be prepared for different possibilities so as not to be surprised.
Here we are at the end of Crypto Nugget, your weekly analysis of an alternative digital currency of your choice on our social networks. Now you have in mind the key levels in EGLD. You also know the different scenarios that will allow you to be flexible in the markets. Remember one thing: the weekly and daily trend is bearish. Hence, it is necessary to favor a bearish scenario. At best, some bullish correction may allow selling opportunities. Of course, all this must be done very strictly in the management of capital. Be warned, the FOMC is getting closer. Volatility can hurt buyers as well as sellers !
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