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EGLD Breaks Out From Long-Term Resistance Line

2 mins
Updated by Ryan Smith
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In Brief

  • EGLD has broken out from a descending resistance line.
  • There is support and resistance at $9.60 and $16, respectively.
  • A short-term retracement is likely before it eventually resumes its upward momentum.
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The Elrond (EGLD) price has been increasing since it broke out from a long-term descending resistance line on Oct. 24.

 EGLD has reclaimed the $9.60 resistance area, and it is expected to continue increasing as long as it is trading above this level.

Despite this, lower time-frames suggest that a short-term drop is expected before it eventually resumes its upward movement.

Long-Term Breakout

The EGLD price has been increasing since reaching a low of $6.44 on Oct. 7. At the end of the month, it broke out from a descending resistance line that had previously been in place since July and accelerated.

On Dec.2, EGLD successfully broke out above the $9.60 resistance area and proceeded to reach a high of $13.63 before dropping.

The closest resistance area is at $15, the 0.382 Fib retracement level of the entire decline. The next resistance level is at $20.30, the 0.618 Fib retracement.

EGLD Breakout
EGLD Chart By TradingView

Cryptocurrency trader @CryptoMitchNL outlined an EGLD chart, stating that the price could rally towards $14, and if successful in breaking out, move to $20.

This is similar to the idea presented above, with the only difference being the first resistance area at $14 instead of $15.

EGLD Movement
Source: Twitter

Future Movement

Technical indicators on the daily time-frame support the possibility of continuation:

  • The MACD is increasing and is above 0.
  • The RSI is increasing and is above 50.
  • The Stochastic Oscillator is increasing and has made a bullish cross.

Therefore, EGLD should continue increasing at least until it reaches the $15 resistance area.

EGLD Movement
EGLD Chart By TradingView

Despite this, the shorter-term two-hour chart shows that EGLD is likely to decline initially before it begins to move upwards.

The RSI has fallen below 50 while the MACD histogram has crossed into negative territory.

The closest minor support area is at $10.10, the 0.618 Fib retracement level and the previous resistance area. If EGLD bounces on this support area as expected, an upward move towards the previously outlined resistance areas should follow.

EGLD Short-Term Movement
EGLD Chart By TradingView

Conclusion

To conclude, EGLD should continue moving upwards towards the next resistance area at $15 and possibly $20.

Nevertheless, a short-term retracement is likely before it eventually resumes its upward momentum.

For BeInCrypto’s previous Bitcoin analysis, click here!

Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.

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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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