- 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.
Recommended Content
Editors’ Picks
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. Investors can expect XRP to kickstart a massive rally.
Optimism price outlook with nearly $90 million worth of OP tokens flooding markets on Friday
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Retail watches from the sidelines with a bias for shorts
Bitcoin could clear $73,777 peak as BTC bulls resurface. Ethereum might fall 10% before next leg up as ETH RSI teases with sell signal. XRP could lose $0.6000 threshold as Ripple bulls fail to show up.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito price action shows a potential cup and handle formation. Based on theoretical measurement rules, a successful breakout could yield a 56% rally to $6.0. A breakdown of the $3.86 support level would create a lower low for JTO and invalidate the bullish thesis.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.