Elrond (EGLD) has showed that its coupled with the movement of BTC and had fallen to its low after the crash. The coin went to its ATH on 12th April 2021 and had a price of nearly $245 before falling to its demise and started a bearish trend after it failed to create a Higher High. EGLD is currently being traded at a price of $139.50. The coin had showed an impulsive move from the start of August where it was consolidating between the price of $80 and $90. Fast forward to a few days the coin has showed momentum and now it is trading at the same price as it was in May before BTC had fallen down to $29k. The coin has an increase of 7.90% in the last 24 hours and an overall increase of a massive 40.23% in the last 7 days.
ELROND (EGLD)- Technical Analysis
EGLD was ranging in a descending channel, continuously making lower lows. Around $65 EGLD has strong support from where it had an impulsive move back in February and had bounced from it too after that. The coin broke the downtrend on 3rd August when it broke out of the channel and broke the previous Lower High as well, confirming a trend reversal.
An important zone to consider is the price where the EGLD coin is ranging currently. We can see that from $139 we saw a momentous drop on 18th May. This zone is a supply zone and hence a major resistance is in place. We can expect a pullback from this price down to a Fibo level of 0.618 (cryptos have been generally observed to drop down to this level during a retracement). If the coin builds nice support here we can expect a move upwards (would love to see a nice consolidation before a break upwards). Possibly breaking the resistance zone but needs high momentum. This all can be seen in the daily time frame.
4H Time Frame and Confirmations
On a 4H time frame our confirmation could be the break of the trend line to the downside. It would confirm our pull-back scenario. We get an additional confluence for that as we a divergence on RSI as well. Market needs to breath before the next leg up.
Near Supports, Resistances, and Potential Targets
The nearest support for the EGLD coin at the moment is around $113.85 and the price might show a bounce from this zone. The nearest resistance is at the point where the coin is currently ranging. The long-term target can be around $200 with an intermediary point of $170 can also be used to take profits. The coin has recovered nicely and it shows that it is sweet for the traders.
Entry should be taken while taking pullback into consideration. An important thing to notice is the behavior of BTC, if it doesn’t mess up we could see the possible scenario taking place.
