$EGLD — a rebound should be distinguished from a reversal
$EGLD could return to the area of its previous consolidation, but the upper target alone does not confirm buyer strength.
If a recovery after a sharp decline is uneven and quickly encounters selling, it may remain just a routine rebound. A more positive assessment requires a hold above resistance and the formation of a higher low.
It is useful to wait for a clear structure here. The size of the previous drawdown does not answer how much the asset can recover. Any decision should be tied to the emergence of demand, not to the feeling that $EGLD has already fallen too much.
$EGLD could return to the area of its previous consolidation, but the upper target alone does not confirm buyer strength.
If a recovery after a sharp decline is uneven and quickly encounters selling, it may remain just a routine rebound. A more positive assessment requires a hold above resistance and the formation of a higher low.
It is useful to wait for a clear structure here. The size of the previous drawdown does not answer how much the asset can recover. Any decision should be tied to the emergence of demand, not to the feeling that $EGLD has already fallen too much.