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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.

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