- Elrond price is clawing back, paring some losses from the previous day.
- Bulls are getting rejected at $208.
- More downturns to come as a bull trap looks to be forming.
Elrond (EGLD) price has been in recovery after the gloomy intraday Monday session. Then the correction followed after a break lower on Sunday. Price action has pared a bit back from the losses, but bulls face issues at $207. A close above is essential, because otherwise a bull trap will be formed, and sellers could run EGLD price down to $161.
Elrond price is make-or-break, and it is up to bulls to convince hesitant buyers
Elrond price headed lower this weekend after bulls attempted to break $300. Instead, price action faded and started to form what looked like a head-and-shoulders pattern. Sellers saw the rejection on Sunday at the intermediary top line and entered in total for a short squeeze. Bulls started to buy in at $180 and caught the falling knife. In the meantime, EGLD price clawed back up to $208.
EGLD price is facing around $208, the monthly R1 resistance level, and bulls are seeing a rejection of that level. Any further upside looks muted for now. Sellers are defending this level and are matching the volume from the profit-taking that buyers conduct around here. This unfolding situation spells issues for the uptrend in EGLD price as sellers comfortably match the volume and might cause another fade.
EGLD/USD daily chart
With Elrond price fading, a drop toward $161 is in the cards as this is the first interesting point of support where sellers would take their profit. Not only does $161 have some historical relevance, but it also has the 55-day Simple Moving Average (SMA) coming in and a short-term orange ascending trend line. Thus, there are three solid reasons that sellers will use to lock in profit, making it a much better entry level for EGLD bulls.
With an additional positive Catalyst, Elrond price could break above $207, which would convince hesitant buyers to come in. Expect from there a further ramp-up in price action toward $250. That level would fall in line with the intermediary black top line from the head-and-shoulders pattern.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.