MultiversX The price managed to break above a long-term formation. Upward momentum is being hindered by a horizontal resistance zone, but technical indicators continue to give signals that it will break above this zone and move higher.
The EGLD price broke out above the long-term wedge pattern with a large bullish candle in the week from October 30th to November 5th. This means the bulls are taking control.
After consolidating above the channel for 4 weeks, the price managed to rise in the week of December 4-10, reaching the horizontal resistance zone of $70. This is interpreted as the last horizontal resistance before the long-term trend transitions to an uptrend.
Although the price received a rejection at the resistance zone last week, it did not fall significantly and began forming another bullish candle. This shows that the bulls are still buying on small dips and awaiting higher highs.
The weekly RSI (Relative Strength Index) is supporting further upside as it approaches the overbought zone but has not formed any bearish divergence. A possible breakout would trigger the strength that would push MultiversX price up by up to 105% to the key resistance level at $130.
The daily chart shows that EGLD price formed a bearish divergence after being rejected from the $70 resistance on December 12, indicating a potential correction.
However, instead of a sharp decline, the price turned the horizontal resistance at $55 into support, creating a hidden bullish divergence. This gives signs that the previous upward trend will continue.
Therefore, MultiversX price seems likely to continue rising in the coming days and climb above the $70 resistance. The nearest horizontal resistance after the breakout lies at $87, which is 35.79% higher than the current price.
The most likely scenario shows MultiversX price rising above the $70 resistance in the near future. While the first target after the breakout is $87, there is also the potential to reach $130.
This bullish view will be invalidated if EGLD price falls below the $55 support zone on the daily time frame.