New week, new concept. We noticed that you liked the special altcoins formula with Polygon. That’s why we’re going to start doing a technical analysis on an altcoin and who knows, soon you can even choose it yourself… but this week, we’re looking at MultiversX, formerly Elrond and his EGLD.
Warning : This article does not constitute investment advice or an invitation to invest. This is just an article for purpose strictly informative. You are the only responsible trading and investment decisions you makez.
Introduction to MultiversX
Formerly named Elrond, MultiversX is a blockchain that works thanks to the Secure Proof of Stake (=POS). The principle is thus to stake its EGLDs, the native token of the blockchain, in order to secure the network. The more EGLDs staked at different validators, the more decentralized the blockchain. They are in the process, at the time of writing these lines, to make a total modification of their ecosystem with new applications in particular. To find all the details of the MultiversX project, you can read the WP here.
However, what interests us the most in terms of technical analysis is how the $EGLD token works.
What you need to identify is the available quantity of tokens, the maximum that will be produced, if a burn mechanism exists, inflation, deflation and staking.
The luck with POS is that they always have many staking offers in order to secure the network. A large quantity of staking tokens means as many tokens that cannot be sold and therefore exert less selling pressure.
Let’s recap!
As of March 01, 2023 (information CoinMarketCap):
- Number of tokens in circulation: 25,066,327
- Quantity in staking: 62.8%
- Maximum number of tokens provided: 31,415,926
- % in circulation: 80%
Notice : In terms of tokenomics, the $EGLD is technically very interesting. Indeed, a token with a limited quantity of tokens is always interesting, but especially when we approach the maximum quantity issued, this means that there will be no more token dilutions (the dilution of a token will necessarily lead to a drop in price if there is no buyer). It still needs to be used! The chance is that thehe MultiversX blockchain continues to grow in terms of users, especially with the news: Xportal just released.
If the expectations around this ecosystem are respected, then tokenomics is ideal for having a strong value at the next BullRun.
Now let’s move on to technical analysis!
Where are we ?
Like all altcoins during this bearmarket, the token has lost a lot of its value… the news has indeed not been good for a while, giving rise to the beginnings of a loss of confidence.
What we can see for the moment is that the breakout of its previous peak before bullrun (September 2020) is providing good support for the moment. However, as you can also see sacred resistances formed above him in particular that around $80 which has thrown the price off a lot since the breakout of the W formed in May 2021.
At least for now no large timescale reversal patternnevertheless we are well in a long-term recharging position.
MultiversX, what to expect for the Suite?
An investor who places himself in a long or medium term position will not place himself in a case like this.
It’s hard to imagine the EGLD returning to those highs of yesteryear. For now, the market is in bear and not all altcoins will go up. Nevertheless, the yellow scenario would be an ideal scenario to set a long-term bottom whose date would correspond with the bitcoin halves.
This yellow scenario involves a final rejection of resistance after breakout of the purple trendline followed finally by a validation retest of the $45 zone.
Conclusion
The news is turned towards MultiversX at the moment and for the months to come with many changes to come and a lot of expectation around them. If the team manages to set up everything they want, then the token $EGLD could be one of the top 10 of the next bullrun. However, it is too early to tell, and graphically there is no confirmation of a long-term reversal yet.
For those who want to buy this token and smooth their purchase price. It still seems like anything below $50 is okay. Beware, however, of a breakout of $30 from below, which could take the token into the abyss. If this happens, we will have to see if a panic sets in around the token and its holders, who we recall, are very present, with more than 60% of the tokens in circulation blocked in staking. See you next week for a new analysis!
Entrepreneur & Dad, passionate about cryptocurrencies, I describe for you the technical analysis. Cofounder of Cryptocademia, a free platform to learn all you want/can about blockchain ! Meet you there at https://www.cryptocademia.com
My job: look at charts and interpret them for you.
Beware, I do not know all the truths.
