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Elrond (EGLD) Price Breakout Could Lead to a 30% Increase

2 mins
Updated by Ali M.
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In Brief

  • Elrond price has broken out from a descending wedge
  • It is attempting to break out from the $57.50 resistance area
  • The daily RSI shows bullish divergence with EGLD price
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Elrond (EGLD) price is expected to break out from the $56.50 resistance area and accelerate its rate of increase afterward.

EGLD price has been moving upwards since breaking out from a descending wedge pattern on Sep. 30.  Currently, Elrond price is in the process of breaking out from the $57.50 resistance area. Since this is both a horizontal and Fib resistance level, a breakout above it could greatly accelerate the rate of increase.

The daily RSI supports the possibility of an increase since it has moved above 50. However, it is worth mentioning that the indicator is in the process of generating a bearish divergence (green line). If the divergence gets confirmed with an EGLD price rejection, it would be expected to initiate a reversal. 

So, whether the Elrond price manages to reach a close above the $57.50 area or gets rejected instead will likely determine the direction of the long-term future movement.

Elrond EGLD price Breakout
EGLD/USDT Chart By TradingView

Short-Term Elrond Price Prediction

The four-hour chart provides a more bullish outlook. The first reason for this is the significant bounce once the Elrond price fell to the 0.5 Fib retracement support level (green circle). The creation of a very long lower wick afterward is a strong sign of buying pressure. 

The second reason is that when zooming in, the main resistance area seems to have been at $56. The area first acted as resistance on Oct. 4 (red icon), before EGLD price deviated above it on Oct. 10. 

The ensuing reclaim of the area and its validation as support (green icons) is a sign that the price is expected to break higher and continue increasing.

Elrond EGLD price short-term
EGLD/USDT Chart By TradingView

Future EGLD Price Movement Toward $76

It is possible that the entire upward Elrond price movement since the June 15 lows is an A-B-C structure (white). If so, the price is currently in the C wave. The sub-wave count is given in black.

Giving waves A:C a 1:1 ratio would lead to a future price of $76. This would also validate the resistance line of a channel that has contained the entire upward movement so far.

Currently, ELGD price is in the process of moving above the middle of the channel (red circle). Doing so would go a long way in confirming the scenario.

Conversely, a decrease below the sub-wave two low (red line) would invalidate this EGLD price prediction and suggest that new lows are in store.

Elrond EGLD price count
EGLD/USDT Chart By TradingView

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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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