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The MultiversX (EGLD) price is trading below a confluence of resistance levels between $35 and $41.50. It has to reclaim them in order to begin a bullish reversal.
Elrond was a blockchain platform that specialized in offering scaling solutions, utilizing its adaptive state sharing technology. However, the company announcing its transformation into MultiversX last Nov. The main focus of the rebranded company is now in the metaverse, as noted by its launch of three new products:
- XFabric – A fully customizable blockchain module.
- xPortal – An application that will act as the portal to the Metaverse.
- xWorlds – An engine that will be used to create virtual worlds.
Despite the rebrand, the EGLD price has posted a negative performance since Nov. 2022.
EGLD Price Prediction for Jan: Can Price Reclaim Resistance?
The technical analysis from the daily time frame shows that the EGLD price has decreased inside a short-term descending wedge since Sept. 16. The descending wedge is considered a bullish pattern, meaning that it leads to breakouts most of the time. The price bounced at the support line of the wedge on Dec. 31 and has been increasing since.
Currently, it is trading right below the resistance line. If a breakout were to occur, the main resistance area would be at $41.50. This is a critical level since it previously provided support since June.
Even though the price action is leaning bullish, the daily RSI has yet to confirm the possibility of a breakout. While the indicator is moving upward, it has not generated any bullish divergence yet and is still below 50.
As a result, the EGLD price prediction for Jan. and beyond cannot be considered bullish until the EGLD price reclaims the $41.50 resistance area. Failure to do so could instead lead to a downward movement that takes the future price below $30.
Wave Count Supports Increase
Measuring from the 2021 all-time high, the EGLD price has decreased by 93%. However, there is the possibility that the price has already completed a long-term five-wave downward movement (black). The presence of the wedge in wave five indicates that the decrease is part of an ending diagonal (red), which is usually followed by a sharp increase.
If the count is correct, the EGLD price would be expected to reach at least to the top of the wedge at an average price of $70 and possibly go higher.
However, a fall below the minimum price of $32.37 (red line) would invalidate this bullish EGLD price analysis.
To conclude, the direction of the future EGLD price trend is not clear. However, the wave count supports the possibility of a completed correction. In order to confirm this, the EGLD price has to break out above $41.50.