- EGLD is developing an inverse head and shoulders pattern in the textbook sense, predicting a bullish reversal.
- The confirmation of breakout above $21.66 may drive the price to $28–$30 range, 25%+ gains.
- Maintaining $20.14 as support is vital in maintaining bullish momentum in the short-term.
The native token of the MultiversX, EGLD, is experiencing bullish breakout indications after the formation of a distinct inverse head and shoulders pattern on the daily chart. This classical reversal formation, which is common at the end of a downtrend, has been forming since February 2025 and now highlights the possible direction reversal.
As of May 14, 2025, EGLD was trading at $20.14, slightly down by 1.9% on the day, while still maintaining key structural support around this level.The chart reveals perfect technical symmetry with the left shoulder developed in early March, a bottoming head in mid-April, and right shoulder developing by early May. Such a consolidation pattern has been attracting more and more attention from traders who view such setups as indicators of the trend reversal.
Breakout Above Key Resistance Could Trigger Next Leg Higher
The inverse head and shoulders pattern’s neckline is just below the $21.66 resistance level. EGLD has already moved above this and, today, it reached an intraday high of $22.06, only to pull back slightly. A prolonged breakout above this area could trigger the pattern’s indicated tops at $28 to $30 – potential 25%+ gains from these levels.
Technically, the price needs to remain above $20.14 to be able to push bullish momentum. This level, which has provided both psychological and structural support, continues to be an important zone in the short term.
Volume and Market Context Remain Crucial
While the pattern is technically valid, broader market conditions and trading volume will likely play a key role in confirming the breakout. With weak volume support, efforts to penetrate and close over resistance could fail
EGLD is currently 152 on the crypto ranking by MC, moving within a narrow range, highly correlated with the wider altcoin sector performance. Traders keenly watch whether the current setup will draw sufficient demand to justify the bullish thesis or see it retrace to consolidation if resistance holds.
Bottom Line
EGLD’s inverse head and shoulders formation is a bullish signal, hinting at a possible change in the short-term direction of the market. However, continued confirmation above the resistance level and overall market alignment will be the main factors that will inform whether the $28–$30 target can be realized in the coming weeks.
