Latest MultiversX (EGLD) Price Analysis

Deep Dive

1. Supply Cap Removal Proposal (Bearish Impact)

Overview: On October 3, MultiversX proposed eliminating EGLD’s 31.4M supply cap and introducing 9.47% annual inflation, reversing its original Bitcoin-like scarcity narrative (Coinspeaker). The plan would burn 10% of validator fees and redirect 90% to builders.

What this means: The move contradicts MultiversX’s long-standing “digital gold” positioning, triggering fears of dilution. Analysts like CyberCapital’s Justin Bons argue the high inflation rate (vs. Ethereum’s ~0.5%) could pressure prices as validators and builders sell rewards. With EGLD already down 61.69% YoY, the proposal amplified existing skepticism.

What to look out for: Community voting results and whether the Foundation adjusts the inflation/burn ratio to address backlash.

2. Technical Breakdowns (Bearish Signal)

Overview: EGLD broke below critical support at $12–13 (now resistance) and is testing the 38.2% Fibonacci retracement level ($10.95). The 7-day SMA ($11.12) and 30-day SMA ($13.02) signal sustained bearish momentum.

What this means: The RSI (39) shows oversold conditions but hasn’t triggered a reversal. MACD’s negative histogram (-0.27139) confirms downward momentum. A close below $10 could accelerate selling toward $8.50 (61.8% Fib), with no historical support below.

3. Ecosystem Dilution Concerns (Mixed Impact)

Overview: Recent events like xMoney’s September token migration (10–30x dilution for UTK holders) and BH Network’s shutdown (linked to EGLD’s price decline) have eroded confidence in MultiversX projects.

What this means: While xMoney’s $21.5M funding (Cointelegraph) shows institutional interest, repeated dilution events suggest governance risks. Social media sentiment reflects FUD, with traders noting increased EGLD inflows to exchanges like Binance and OKX.

Conclusion

EGLD’s decline stems from a credibility crisis around its monetary policy shift, compounded by technical breakdowns and ecosystem instability. While the inflation proposal aims to incentivize builders, its execution risks alienating long-term holders. Key watch: Can EGLD hold $10 support, or will breaking this level trigger a capitulation phase toward $6–7? Monitor the Foundation’s response to community feedback and on-chain accumulation patterns.

Deep Dive

1. xMoney Funding Momentum (Bullish Impact)

Overview: xMoney, a MultiversX-backed payments platform, secured $21.5M in strategic funding on 30 September, led by Sui Foundation and MultiversX (Cointelegraph). This followed its token migration to Sui, which initially sparked dilution fears but now signals cross-chain expansion.
What this means: The funding validates MultiversX’s ecosystem partnerships and may attract developers to its payment infrastructure. However, xMoney’s recent tokenomics controversies (e.g., 10–30x holder dilution in September) linger as a risk.

2. Technical Rebound (Mixed Impact)

Overview: EGLD’s RSI (14-day: 41.88) hovered near oversold territory, while its price ($10.82) tested the 38.2% Fibonacci retracement level ($11.12). However, it remains below all key moving averages (7-day SMA: $11.5).
What this means: Traders may be capitalizing on oversold conditions, but sustained recovery needs a break above $11.5. The MACD histogram (-0.299) still signals bearish momentum, suggesting volatility ahead.

3. Futures Listing Catalyst (Neutral Impact)

Overview: BitTapGlobal listed EGLD/USDT futures on 3 October, coinciding with a 30% spike in 24h trading volume ($32.85M).
What this means: Increased derivatives access can improve liquidity, but futures-driven rallies often lack durability without fundamental upgrades.

Conclusion

EGLD’s uptick reflects a mix of oversold technicals, strategic funding news, and derivatives activity, though long-term concerns about supply inflation (post-3 October proposal) and ecosystem dilution persist. Key watch: Can EGLD hold above $10.50, its psychological support, amid low altcoin season sentiment (CMC Altcoin Season Index: 37, -49% monthly)?