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EGLD Price Analysis – Elrond Attempts To Stabilize After Recent Sell-Off

·Lesedauer: 2 Min.

Elrond has been under material pressure since mid-November as traders began to take profits off the table after the major rally. After touching highs near $540, Elrond lost momentum and moved below the $300 level.

This move coincided with the general sell-off in crypto markets which was led by Bitcoin. The world’s leading cryptocurrency moved from the $60,000 level to the $50,000 level (and traded below $43,000 at the low point of the recent sell-off), and it looks that this move triggered a wave of profit-taking in other coins.

H4 Chart Technical Analysis

Elrond is currently trying to settle above the 20 EMA on the H4 chart. I’d note that all recent attempts to rebound have been stopped at lower levels, but EGLD has also received support at higher levels when it tried to move to new lows. Typically, such formations are good for upside breakouts, so Elrond has a decent chance to gain upside momentum in case it manages to settle above the 20 EMA on the H4 chart.

If Elrond gets above the 20 EMA near $293, it will head towards the next resistance level at $302. A move above this level will push Elrond towards the next resistance which is located near the 50 EMA at $312. In case Elrond gets above $312, it will continue its upside move and head towards the resistance at $322.

On the support side, the nearest support level for Elrond is located at $282. A move below this level will push Elrond towards the support at $270. In case Elrond declines below this level, it will head towards the support at $260.

Daily Chart Technical Analysis

Now, let’s take a look at the bigger picture. Elrond is pulling back in a wide downside channel. In case Elrond starts to move higher, it will need to get above the 50 EMA near $324 to have a chance to gain sustainable upside momentum.

Please note that there is a material resistance level at $322 on the H4 chart, so you can expect significant resistance somewhere in the $320 – $325 area. I’d also add that Elrond faced significant resistance near $325 when it was consolidating before rally in November.

In case Elrond fails to get above the 50 EMA on the daily chart, it will likely continue its downside move. A move below the $260 level will indicate that Elrond is ready to get closer the recent lows near the $220 level. RSI is in the moderate territory despite the major pullback, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

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This article was originally posted on FX Empire


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