Elrond sellers to push $145 if EGLD fails to breakout
|- Elrond price creates extremely bullish breakout conditions, but lackluster follow-through hints at a bull trap.
- Key support levels below must be broken for bears to take control; they must hold as support for bulls to attempt new highs.
- $145 is the target value area for bears.
Elrond price has one the most bullish and positive-looking cryptocurrencies charts in the entire crypto space. Every condition that needs to be fulfilled for an undeniable bullish continuation move within the Ichimoku Kinko Hyo system is present – but the follow-through from buyers has yet to occur.
Elrond price faces weak participation from buyers after a major three-day rally
Elrond price will need bulls to defend a significant support zone between $218 and $225. The 38.2% Fibonacci retracement, Tenkan-Sen and Kijun-Sen all share that value area. It should be difficult for sellers to crash below that confluence zone of support.
However, the response from buyers after a strong three-day rally has been disappointing. This is especially true when such an amazingly bullish close on Thursday saw Elrond price find support against the Kijun-Sen and then burst through and close above the Tenkan-Sen. Yet buyers remain placid.
EGLD/USDT Daily Ichimoku Chart
If Elrond price is pushed below the confluence zone between $218 and $225, bears' target zone is at $145. $145 contains the 2021 Volume-Point-Of-Control, the 100% Fibonacci expansion, and Senkou Span A. There is a strong possibility of this occurring as a bear flag exists on the Relative Strength Index and the Optex bands are nowhere near an extreme oversold condition.
To invalidate any incoming bearish pressure on Elrond price, bulls need to push for a close above the Thursday high of $259. In addition, the Composite Index would also need to avoid creating any bearish divergence.
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