The price action of EGLD on the 12-hour chart on Binance shows significant technical setups pointing to a potential trend reversal.
Key Technical Patterns and Indicators
A falling wedge pattern on the EGLD/USDT chart often heralds an upside breakout. Moreover, a bullish divergence between price action and the MACD indicator strengthens reversal expectations. While EGLD's price makes lower lows, the MACD histogram and signal lines form higher lows, indicating weakening selling pressure and rising bullish momentum.
Crucial Support and Resistance Levels
A horizontal support level near $20 has consistently acted as a price floor. EGLD recently rebounded from this level, reinforcing its significance. Meanwhile, the upper descending trendline serves as a key resistance zone. Previous attempts to break this resistance have failed, pushing the price lower each time.
Market Sentiment and Outlook
The presence of a falling wedge increases the likelihood of trend exhaustion. Although EGLD's current price action lags behind its underlying development, investors remain watchful for a breakout confirmation. A decisive move above resistance with strong volume would confirm trend reversal, setting EGLD for a sustained uptrend.
Technical analysis of EGLD reveals potential for trend changes. If buyers maintain momentum, it could lead to a sustained uptrend or, if unsuccessful, further downside pressure.
