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Summary
• Price tested key support at $7.70 and rebounded, forming bullish reversal patterns.
• RSI and MACD signaled oversold conditions, suggesting potential for a short-term bounce.
• Volatility expanded after the $7.70 level, with volume confirming the downward leg.
• Bollinger Bands show price near the lower band, reinforcing low volatility after the break.
• Fibonacci levels at $7.80 and $7.73 could see renewed interest for buyers.
MultiversX/Tether (EGLDUSDT) opened at $8.06 on 2025-12-06 at 12:00 ET, hit a high of $8.13, a low of $7.57, and closed at $7.85 on 2025-12-07 at 12:00 ET. Total volume was 166,446.57 EGLD, with a notional turnover of approximately $1,285,600.
Structure & Formations
Price action formed a bearish engulfing pattern at the $8.03–$8.06 level, signaling a shift in sentiment. A strong rejection at $7.70 occurred, with a bullish inside bar suggesting potential for a short-term reversal. The 24-hour chart shows a large bearish candle with wicks extending to $8.13 and $7.57, indicating aggressive selling pressure and a test of core support.
Moving Averages
On the 5-minute chart, price closed below both the 20 and 50-period moving averages, reinforcing the downtrend. On the daily chart, the 50-period SMA sits near $7.90, acting as a key level for near-term direction. The 200-period MA is further above at $8.05, suggesting bearish divergence.
MACD & RSI
The MACD turned negative and remained below zero, signaling sustained bearish momentum. RSI bottomed near 25–30 at $7.57–$7.60, indicating oversold conditions. This may trigger short-covering or buying interest, but a sustained rebound would need to confirm above $7.80 for bullish credibility.
Bollinger Bands
Volatility expanded significantly after the $7.70 support test, with price closing near the lower Bollinger Band. This suggests a period of consolidation is likely, with potential for a bounce or continued sideways action before a new directional move.
Volume & Turnover
Volume spiked during the initial break below $8.00 and again near $7.70, confirming the bearish move. Turnover also increased notably during this phase, reinforcing the conviction of the sell-off. However, declining volume in the final hours indicates waning momentum, which could precede a short-term rebound.
Fibonacci Retracements
The $8.13 high to $7.57 low forms a key retracement structure. The 50% level at $7.85 is currently being tested, with the 38.2% at $7.89 and 61.8% at $7.80 likely to dictate near-term price action. A close above $7.90 would strengthen bullish potential.
Forward Outlook
The market appears to be consolidating after a sharp correction, with key levels at $7.80 and $7.90 offering possible turning points. A break above $7.95 could attract near-term buyers, but a retest of $7.70 remains a critical risk for further bearish follow-through. Investors should closely monitor volume behavior for signs of conviction.
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