Elrond Price Forecast: EDLG eyes lower lows as bearish pressure mounts


  • Elrond price broke down from a descending triangle as it sliced through the $126 support barrier.
  • If sellers continue to pile up, then the reversal pattern forecasts a downswing to $74.
  • Declining developer activity adds credence to EGLD’s bearish outlook.

Elrond price crashed approximately 35% in the last 24 hours while the network moves closer to “infrastructure decentralization.”

Despite the positive fundamental developments behind EGLD, the recent sell-off could extend as support weakens.

The road to decentralization

Elrond is in the final phases of a bootstrapping process that involves “infrastructure decentralization.”

For this purpose, a set of software tools known as “Delegation Manager” was launched, allowing users to start their non-custodial staking operations.

The blog post also detailed the launch of “Syntropy Integration” with the Elrond network, which helps validators or node operators better manage their servers and related functions.

Reportedly, this integration also proposes protocol enhancements and internet communication by utilizing Distributed Autonomous Routing Protocol (DARP) to optimize the traffic, according to said Lucian Mincu, Elrond CIO.

“By equipping average node runners with orchestration tools that are typical for professional operators, Syntropy can potentially help with retaining high Validator availability and security while the Elrond Network grows further decentralized. We’re looking forward to seeing the outcome of the public tests.” 

Unlike other blockchains, Elrond is launching new products and features every day for 100 days to increase the utility around its blockchain via a campaign known as “Hypergrowth100.”

To this end, Elrond announced its entry into the DeFi space via the “Elrond DeFi 2.0 module” on February 19. 

Using the capabilities of the EGLD blockchain, Elrond plans to solve the problems that exist in the current DeFi landscape, like high fees, higher confirmation times, among others.

Elrond price primed for further losses

Elrond price hit an all-time high at $180 on February 9. Since then, EGLD has formed a series of lower highs while bouncing off a flat resistance at $126.

Joining these downswings and the horizontal support result in a descending triangle pattern. 

Such technical formation predicts a 40% correction determined by measuring the triangle’s y-axis and adding it to the breakout point at $126. The bearish outlook projects that EGLD could retrace towards $74.

EGLD/USDT 4-hour chart

EGLD/USDT 4-hour chart

At the time of writing, EGLD has already broken out of the triangle’s x-axis and is trading at $106. This bearish confirmation suggests that Elrond price has another 20% before it hits the intended target.

Adding credence to the bearish thesis is a 29% drop in the development activity from February 16 to February 23. Correspondingly, EGLD price has seen a 37% decline within the same period. 

While an increase in this metric is perceived as a bullish sign by investors, the contrary holds as well.

Elrond developer activity chart

Elrond developer activity chart

On the other hand, a 4-hour candlestick close above the triangle’s hypotenuse at $142 will invalidate the bearish thesis. In such a case, EGLD could climb to $160.

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.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

GRT risks freefall under $1 amid broad-based crypto declines

The Graph is teetering at $1.73 after its uptrend ran into a barrier around $2.9. Declines have been consistent within the confines of a descending parallel channel. Losing the middle boundary support has left GRT bears with open-air to explore.

More Graph News

LINK bulls flee as broadening wedge pattern hints at a 50% drop

Chainlink price nears the end of an ascending broadening wedge pattern that forecasts a 50% drop. Transactional data shows that $17.8 could be an inflection point. If LINK price slices through this support, then a drop to $13 seems likely.

More Chainlink News

XLM poised for massive 27% breakdown, as the technical picture worsens

Stellar has recently been rejected from the yearly high of $0.61. Bulls tried their best to secure higher support but failed in that task. XLM continues with the breakdown below a descending trendline that seems to have confirmed a triangle pattern on the 4-hour chart. 

More Stellar Lumens News

DOGE in trouble as multiple technical indicators scream sell

Dogecoin price hints at a 75% upswing as the bull flag pattern develops. A decisive close above $0.058 would indicate a start of a bullish breakout. Mounting selling pressure could invalidate crucial support at $0.047 and push it down by 20% to $0.037.

More Dogecoin News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: BTC journey to $100,000 might be easier than expected

This past week has been extremely beneficial for Bitcoin which jumped by 30% since Monday 8. Several positive announcements, especially Tesla purchasing $1.5 billion worth of the digital asset propelled the flagship cryptocurrency to new highs.

Read the weekly forecast

BTC

ETH

XRP