|

Elrond Price Prediction: EGLD looks ready to jump to $165

  • Elrond price has been bounded inside a descending channel since March 10.
  • EGLD sits on firm support provided by the .50 retracement level.
  • Significant resistance at the convergence of the 100 and 200 four-hour simple moving averages (SMA).

Elrond price has been drifting lower inside a descending channel on below-average volume for the last seven days. But a recent spike in upward pressure suggests that a breakout is near.  

Elrond price needs volume to surge for a convincing breakout

The Relative Strength Index (RSI) did not show a bullish momentum divergence with price at the channel’s lower boundary. Such market behavior potentially indicates that a retest of the channel’s support trendline is necessary before generating the volume needed to support EGLD advancing higher.

If Elrond price gains traction from current levels, the first notable resistance is the convergence of the 100 and 200 four-hour SMAs at $142. It would represent a 10% upswing, but it would not confirm that the cryptocurrency has printed a firm low around the .50 retracement level.

Only a daily close above $142 will project a continuation of the rally towards the March 10 high at $165. This price point will likely act as formidable resistance since it coincides with an area of price congestion extending back to mid-February.

EGLD/USD 12-hour chart

EGLD/USD 12-hour chart

Although Elrond price has held the critical .50 retracement level, the current levels remain dangerously close to it. 

A failure to hold the corrective low at $124.90 could release a heavy wave of selling and knock EGLD price to the .618 retracement level at $119.50. Further downward pressure could then push this cryptocurrency to the channel’s lower trendline at $113.50.

Author

Sheldon McIntyre, CMT

Sheldon McIntyre, CMT

Independent Analyst

Sheldon has 24 years of investment experience holding various positions in companies based in the United States and Chile. His core competencies include BRIC and G-10 equity markets, swing and position trading and technical analysis.

More from Sheldon McIntyre, CMT
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Ripple faces persistent bear risks, shrugging off ETF inflows

Ripple is extending its decline for the second consecutive day, trading at $2.06 at the time of writing on Friday. Sentiment surrounding the cross-border remittance token continues to lag despite steady inflows into XRP spot ETFs. 

Luna Classic soars 20% as Do Kwon's sentence hearing looms

Luna Classic surges 20% on Friday, extending its recovery for the fourth consecutive day. Roughly 959 million tokens have been burned in December so far, fueling LUNC's recovery.

Crypto Today: Bitcoin, Ethereum, XRP pare gains despite increasing hopes of upcoming Fed rate cut

Bitcoin (BTC) is steadying above $91,000 at the time of writing on Friday. Resistance at $94,150 capped recovery on Wednesday, but in the meantime, bulls have contained downside risks above $90,000. 

Ethereum strengthens against BTC post-Fusaka, targeting $3,200 breakout

Ethereum trades above $3,100 on Friday, with bulls aiming for a breakout above a two-month-old resistance trendline. Ethereum gains strength against Bitcoin as demand for the major altcoin increases after the Fusaka upgrade.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Crypto Today: Bitcoin, Ethereum, XRP pare gains despite increasing hopes of upcoming Fed rate cut

Bitcoin (BTC) is steadying above $91,000 at the time of writing on Friday. Resistance at $94,150 capped recovery on Wednesday, but in the meantime, bulls have contained downside risks above $90,000.