Cryptheory: NFT, Play-to-Earn, Crypto News

24/7 crypto news, cryptocurrency meaning, guides, learning, #cryptohelpschildren

Elrond (EGLD) Price Breaks Out Above Long Term Resistance

2 min read

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

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.

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 Breakout
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 Short-term
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.

EGLD Count
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 Channel
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 Correction
EGLD Chart By TradingView

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

The post Elrond (EGLD) Price Breaks Out Above Long Term Resistance appeared first on BeInCrypto.

Source

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

Leave a Reply

Your email address will not be published.