fxs_header_sponsor_anchor

Why Elrond’s EGLD price has potential even in a bear market

  • EGLD price has printed an impulsive wave up, which could be the beginning phase of a larger rally.
  • Elrond price shows an influx of selling pressure on the Volume Profile Indicator at the top of the rally, which hints that a correction will occur.
  • A breach below $45 will invalidate the bullish potential.

Elrond’s EGLD price is one of the few cryptocurrencies still showing strength in the market. Traders should keep the digital asset on their watchlists in the coming days.

EGLD price has upward potential

Elrond price has become a wild card in the cryptocurrency space. While most cryptocurrencies have succumbed to Bitcoin’s demise, EGLD's price remains unfazed. The highly scalable blockchain token established an Elliott five-wave impulse between September 28 and October 17. The impulsive rally produced a 27% increase in market value for investors. 

EGLD price currently auctions at $57.15. The bullish strength in crypto’s turbulent environment is certainly applaudable. However, one more correction may occur before the trend can continue. 

The Volume Profile indicator confounds this idea as an influx of volume poured into the market at the top of the 27% rally. As the price rebounds higher, the volume momentum is waning. The Relative Strength Index (RSI) also shows bearish divergences between price and each new ascending high.

EGLD/USDT 8-Hour Chart

Combining these factors, EGLD price should witness a pullback towards the midpoint of the 27% rally in the coming days. If the market is genuinely bullish, hammer sticks and increased volume will surface near $48. A rally toward the $75 liquidity levels could occur afterward. Such a move would result in a 50% increase from the current market value. 

Invalidation of the uptrend thesis is a breach below the origin point of the rally at $45. If the bears breach this level, consider the entire uptrend scenario void. The next bearish target lies at $40, resulting in a 30% decrease from the current EGLD price. 

In the following video, our analysts deep dive into the price action of Bitcoin, analyzing key levels of interest in the market. -FXStreet Team


 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.