Team Coin-Score
November 5, 2023
10:07 am

The explanation of the EGLD smoking increase!

The world of cryptocurrencies is no stranger to volatility. The rapid upswings and sharp downtrends often leave traders on the edge of their seats. One such name that has recently grabbed attention is EGLD. Over the past few days, EGLD found significant support at the $22 mark, which later resulted in a whopping 145% bounce. The explanation of the EGLD smoking increase lies in a combination of factors that we will now explore. Let’s deep dive into the reasons behind this phenomenal growth.

Social Media Share

EGLD’s Key Support at $22

A mere glance at EGLD’s price chart reveals that the $22 level is more than just a random number. A few days ago, EGLD reached this crucial support, and since then, it demonstrated its significance by allowing the price to bounce by a staggering 145%.

Why is the $22 threshold deemed so essential? The history goes back to 2020 when EGLD faced a robust resistance at this very price point, resulting in a pullback towards $6. However, once EGLD managed to breach the $22 resistance and subsequently confirm it as a supportive base, the token experienced a meteoric rise. This historical precedent lends weight to the current bounce witnessed off the $22 mark.

The Trendline from August 2022

If you’ve been keenly observing EGLD’s movement since August 2022, you’d notice the formation of a distinct trendline. This resistance trendline on the daily timeframe has been tested no fewer than five times. As seasoned traders would tell you, when a trendline, which has faced multiple tests, eventually breaks, the resultant movement can be pronounced. This principle seems to have played out with EGLD, reinforcing the sentiment around its robust upward trajectory.

EGLD’s Future Trajectory: What to Expect?

While it’s always a challenge to predict the future with absolute certainty, especially in the unpredictable realm of cryptocurrencies, certain indicators can offer hints. EGLD has resistance points at $54, $63, and $69. Out of these, the $54 mark holds notable importance in terms of price action.

Based on our assessment, there’s a possibility that EGLD might retrace to around the $32 mark. The recent surge, albeit impressive, appears somewhat unsustainable and potentially manipulated. Traders and investors need to tread with caution and ensure they’re making informed decisions based on comprehensive research.

In Conclusion

The explanation of the EGLD smoking increase is rooted in its historical price behavior and the established trendlines. While the recent uptick has surely raised eyebrows, understanding the context and factors driving such a movement is crucial for any potential investor. As always, in the volatile world of cryptocurrencies, it’s advisable to stay updated, be vigilant, and always keep an eye on the bigger picture.

Go to fundamental analysis EGLD!