Elrond Price Forecast: EGLD eyes rebound from crucial support following 60% downswing

Elrond rejection from the all-time high explores price levels under $100.
Support at $95, and the 100 SMA is holding EGLD in position ahead of a potential upswing.
The downtrend will remain intact if Elrond closes the day under the 100 SMA on the 4-hour chart.

Elrond is among the biggest losers in the cryptocurrency market. A bearish wave has seen both small and large coins correct from their recent highs. EGLD’s massive upswing ran into a strong barrier at $225, paving the way to a 60% breakdown below $100. Meanwhile, bulls seem to be working on a recovery mission as long the primary support holds firmly.

Elrond downtrend is nearing exhaustion

The breakdown from the all-time high failed to secure support at the 61.8% Fibonacci retracement level, taken between the last swing high at $225 to a swing of $96.2. The bearish leg progressed under $100 before Elrond bounced off the 23.6% Fibo.

At the time of writing, EGLD is dancing at $140 after reclaiming the lost ground above the 100 Simple Moving Average (SMA) on the 4-hour chart. Elrond must close the day above this key moving average to sustain the ongoing recovery. Notably, massive buy orders will be triggered if the token steps above either the 61.8% Fibo or the 50 SMA.

The Relative Strength Index (RSI) on the 4-hour chart has validated the rebound after bouncing off the oversold area. A continued movement toward the midline will cement the bulls’ influence over the price.

EGLD/USD 4-hour chart

Looking at the other side of the picture

Elrond is not out of the woods yet, and therefore, it is essential to tread with caution. If the uptrend cannot be sustained above the 100 SMA on the 4-hour chart, another retracement will take precedence. The support at the 23.6% Fibo near $95 would also be retested. A break under this zone may open the Pandora box as bears rush to push for losses toward the 200 SMA.

Share: Cryptos feed

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.