Technical analysis by S_CAPITAL about Symbol EGLD: Buy recommendation (7/12/2024)

Elrond #EGLD is currently positioned in a descending wedge pattern, a bullish formation often signaling a trend reversal. This chart pattern suggests that EGLD is approaching a potential breakout point, offering a compelling entry for traders seeking significant upside. Key Points Supporting This Trade: 1. Bullish Reversal Pattern: The descending wedge indicates that selling pressure is diminishing, while buying interest is gradually increasing. Once the price breaks above the resistance line, a sharp upward movement is typically expected. 2. Volume Analysis: Observing the volume, we can see a decline in trading volume within the wedge, followed by a spike as the price approaches the breakout point. This volume behavior aligns with a breakout scenario, adding confidence to the trade setup. 3. Strong Support Levels: The chart highlights a well-established support level around $29.09, providing a solid base for EGLD. This level has been tested multiple times, proving its reliability and minimizing downside risk. 4. Positive RSI Divergence: The Relative Strength Index (RSI) is showing bullish divergence, indicating that the momentum is shifting in favor of the bulls. This divergence often precedes a price increase, reinforcing the bullish outlook. 5. Favorable Risk-Reward Ratio: With a target price of $61.64 and a stop loss at $29.09, the risk-reward ratio is highly attractive. This setup offers a potential gain of approximately 73%, making it a lucrative opportunity for traders. In summary, the combination of the descending wedge pattern, volume behavior, strong support levels, positive RSI divergence, and favorable risk-reward ratio makes EGLD a promising trade. Stay tuned for the breakout, and let's capitalize on this potential upward movement! Happy trading! ⚠️All trade ideas are published with a time delay. If you want to follow the trade in real time, please follow the link to our open copy trading account on Binance. 👉Our account with open trading, and all our other resources at this link:Trade activeTrade closed: stop reached