Share:
  • Elrond price has been in a solid and persistent uptrend since the week of June 25th.
  • No major pullbacks have occurred in over 23 weeks.
  • Overbought conditions on the weekly and daily chart indicate a pullback is imminent.

Elrond price has been one of the biggest surprises in the altcoin space for 2021. Rising more than 780% from the June 25th 2021 open at $82.55 to the all-time high recently made on November 23rd at $544.25, it is due for a pullback – one that might be sustained.

Elrond price positioned for a 26% drop to the $300 value area

Elrond price is the definition of overbought on the weekly Ichimoku chart. The Relative Strength Index has two overbought settings in a bull market: 80 and 90. Elrond's Relative Strength Index pushed to the first overbought level at 80 and then moved even higher to hit 90 before facing swift rejection and now dropping below the 80 level. The 'hook' on the Relative Strength Index warns of a steep drop in price action.

The Composite Index, likewise, shows extreme overbought conditions in Elrond price. The arrow on the chart below shows the general rise in Elrond price with higher highs ever since February 2021. However, the arrow on the Composite Index shows a series of lower lows during that same period. This is a development known as regular bearish divergence, warning that the current uptrend will face a correction or broad trend change very soon.

The Composite Index has dropped below the fast-moving average while simultaneously printing a lower high, so a dip is expected. If Elrond closes the weekly candlestick below the Tenkan-Sen at $381, the next Ichimoku support level is a shared support zone in the $300 value area. The Kijun-Sen ($300) and the 38.2% Fibonacci retracement share the same value area and likely act as solid support.

EGLD Weekly Ichimoku Chart

But traders should be aware that Elrond price has respected the Tenkan-Sen as support for almost half a year. Additionally, it remains in price discovery mode, so it isn't unlikely to return to bullish price action. A weekly close above the weekly open would invalidate any near-term bearish retracement projections.

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

China coin narrative in play as Coinbase CEO warns of restrictive US crypto policies

China coin narrative in play as Coinbase CEO warns of restrictive US crypto policies

Brian Armstrong, CEO and co-founder of cryptocurrency platform Coinbase, shared his thoughts on restrictive US crypto policies in an opinion editorial published by Market Watch on Tuesday.

More Cryptocurrencies News

Ethereum holders pull $1 billion in ETH off exchanges hinting retail-led rally

Ethereum holders pull $1 billion in ETH off exchanges hinting retail-led rally

Ethereum holdings in exchange wallets declined by $1.04 billion between May 8 and May 31. Interestingly, while large wallet investors have shed their Ether holdings, the altcoin got redistributed to addresses with less than 1 ETH.

More Ethereum News

Dogecoin price action hints DOGE can reverse its bearish trend

Dogecoin price action hints DOGE can reverse its bearish trend

Dogecoin (DOGE) price presents a potential for trend reversal provided a certain set of conditions are met. These conditions involve overcoming key hurdles for DOGE bulls and seeing momentum indicators flip bullish on lower time frames.

More Dogecoin News

PEPE price to drop another 15% as altcoin winter is only halfway finished

PEPE price to drop another 15% as altcoin winter is only halfway finished

PEPE price is feeling the frost and cold of the altcoin winter that continues with some notable slides in price valuation in the altcoin space. After price action dropped below $0.0014700, traders must have understood that a turnaround would only occur at a high supportive level.

More PEPE News

Bitcoin: BTC delays inevitable crash to $25,000

Bitcoin: BTC delays inevitable crash to $25,000

Bitcoin price is delaying a crash that has been brewing for roughly two weeks. A failure to push higher could result in a steep correction next week. The troubling macroeconomic conditions could be key in catalyzing and trigger a nosedive for BTC holders.

Read full analysis

BTC

ETH

XRP