MultiversX price in a sweet spot, targets 15% gains

MultiversX (EGLD) price spiked higher on Wednesday after markets got high on the sugar rush provided by the People’s Bank of China (PBOC). The Chinese central bank committed to injecting capital locally into all kinds of small and midcap enterprises. Markets took the news a shot for the bow as other central banks could be seen doing this soon and creating a goldilocks scenario.

MultiversX advances on PBOC financial support

MultiversX price, already up over 3% for this Wednesday, has seen bulls coming in hard and buying everything in sight. The only caveat to mention here is that both the 55-day and the 200-day Simple Moving Average (SMA) are a bit in the way around $46. Once there, it looks straightforward where bulls will want to take EGLD price to.

EGLD is primed for a test on that red descending trendline that has been acting as a cap since November of last year. With not many tests along the way, a clean break could be in the cards. Regardless if the trend line breaks or not, a mere test means 15% gains in the trading book for bulls.

EGLD/USD  4H-chart    

A bigger risk comes that bulls will quickly need to detox from this sugar rush as there is no evidence or any message whatsoever that other central banks are committing to do the same as the PBOC has done this morning. Once the dust settles, a fade under the pressure of profit-taking will get underway and see EGLD quickly back to $41. If bears even use this opportunity to go full scale, another $3 could be cut from the price towards $38 with a test at the green ascending trend line.