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MultiversX (Elrond) Price Prediction: A sweep of the summer's lows

  • EGLD price has fallen sharply, wiping out all of Autumn's liquidity. 
  • A breach of the summer lows could result in a free-fall decline targeting prices last traded in 2020.
  • The downtrend scenario could be invalidated if the bulls reconquer the $45 zone.

MultiversX (Elrond) price is declining in a free-fall fashion. During the third trading week of November, the bulls have yet to show retaliation signals. Key levels have been identified to determine where EGLD could head next.

MultiversX (Elrond) price is underwater 

MultiversX (Elrond) price has seen better days as the digital currency is currently down 35% for November. The highly scalable blockchain token shows sparse signs of recovery as bulls appear to be abandoning ship. If market conditions persist, a sweep of the summer lows at $38 could occur in the coming days.

EGLD price currently auctions at $41.02. The Relative Strength Index breached extremely oversold levels during the recent decline and remains suppressed below bullish support zones. The 8-day exponential moving average has also rejected entry to the mid-$40 price levels. The rejection now suggests traders utilizing Autumn’s liquidity zones as protective stop losses are trapped at a loss.

tm/egld/11/1/16/22

EGLDUSDT 12-Hour Chart

Combining these ingredients, the EGLD price could head south further to force a liquidation event. The summer lows are the first bearish target. If $38 does not form a double bottom, the next level of support would be near the $32 region, a price last traded in 2020.

The invalidation of the bearish thesis is a breach above the recent swing high at $45. If the bulls can retag this level, an additional uptrend toward $50 could unfold. Such a move would result in a 20% increase from the current MultiversX (Elrond)price. 

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

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