Exclusive Elrond (EGLD) Price Breaks Out Above Long Term Resistance

Share Article
In Brief
  • Elrond has broken out from a descending resistance line.

  • There is resistance at $127 and $150.

  • EGLD/BTC has reclaimed the 0.0022 satoshi support area.

  • promo

    BIT Launchpad: Up To 3,500 FREE BIT. Don’t Miss The Beat. Join Now!

The Trust Project is an international consortium of news organizations building standards of transparency.

Elrond (EGLD) has broken out from a descending resistance line that had previously been in place since April 12.

Sponsored



Sponsored

While technical indicators are bullish, a bullish trend reversal has not been confirmed yet.

EGLD breaks out

Elrond has been decreasing alongside a descending resistance line since April 12. On this day, it reached an all-time high price of $245.80. The downward movement continued until June 22, when a low of $67.39 was reached.

Sponsored



Sponsored

The low was combined with bullish divergences in the MACD, RSI, and Stochastic oscillator. Afterward, the RSI moved above 50 and the Stochastic oscillator made a bullish cross. Therefore, technical indicators are bullish.

EGLD has been moving upwards since then, eventually breaking out from the aforementioned descending resistance line on July 3. It reached a high of $107.81 before dropping. 

The main resistance levels are found at $127 and $150. These targets are the respective 0.382 and 0.5 Fib retracement resistance levels.

EGLD Chart By TradingView

The two-hour chart shows a confluence of support levels at $80. This is the 0.5 Fib retracement support level and a potential ascending support line. 

Therefore, EGLD would be expected to bounce once it reaches the level.

EGLD Chart By TradingView

Wave count

Cryptocurrency trader @TheTradingHubb outlined an EGLD chart, stating that if another downward movement would follow, the price could dip to the $40 region.

Source: Twitter

The fact that the entire movement since May 19 has been contained inside a descending parallel channel indicates that this could indeed be a running flat correction. 

If EGLD breaks down below the $80 area, which is also the midline of the channel, it would indicate that another downward move toward the $40 area is likely.

EGLD Chart By TradingView

EGLD/BTC

EGLD/BTC has been moving downwards since Feb. 8, when it reached an all-time high of 0.005 satoshis. 

Throughout the decrease, it bounced above the 0.022 satoshi support area several times. While it initially broke down on June 28, the decrease was only a deviation before an upward move caused it to reclaim the level (red circle). The entire decrease resembles a completed A-B-C corrective structure. 

EGLD then broke out from a descending resistance line that had been in place since the aforementioned Feb. 8 high. 

Similar to the USD pair, technical indicators in the daily time-frame are bullish. 

The closest resistance area is found at 0.0034 satoshis.

EGLD Chart By TradingView

For BeInCrypto’s latest bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Sponsored
Share Article

Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate 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.

Follow Author

Market signals, studies and analysis! Join our Telegram Today!

Go

Bit2Me ICO JUST STARTED! Buy B2M token now.

Buy now!

BIT Launchpad: Up To 3,500 FREE BIT. Don't Miss The Beat.

Join Now!