Elrond price might plunge to $280 as fear takes over investors

Elrond price is in its fourth consecutive day of losses after hitting new highs at the beginning of the week.
EGLD price has accelerated its downtrend as global market sentiment is acting as a headwind for cryptocurrency assets.
Expect another 30% correction before bulls engage in buying the dip at around $280.

Elrond (EGLD) continues its downside move after tumbling from towering all-time highs at the beginning of the week. Bulls are struggling to build support to keep price action in check. Bears pushed Elrond price further to the downside with the move accelerated by bulls booking profits and releasing supply. EGLD price rolled over today as part of a global sell-off in the markets driven by Covid fears. Expect EGLD price to look for firm support, as multiple plateaus present themselves to the downside.

Elrond price further corrects, plenty support levels to slow down aggressive selling

Elrond price sees bulls in a rout after missing out on the chance to take profits after hitting new all-time highs at $560,00, at the start of the week. Now downside has accelerated and pierced the monthly R3 resistance at $420 and the 61.8% Fibonacci retracement level at $404.64.

EGLD bears will want to keep the momentum going to the downside, but it may ease at around $363 where they will face the R2 resistance level and the 50% Fibonacci level at $344. These two elements will already have slowed down the bearish move and triggered profit taking along the way.

EGLD/USD daily chart

As bears push EGLD price down to test the monthly R1 resistance level at $320, it will give bulls the chance to pick up some Elrond at a discount. . With the 55-day Simple Moving Average (SMA) proving its support since September on several occasions, expect the downtrend to halt at $296, for a bounce and a quick spike back up towards $344, which is the 50% Fibonacci level. Since it is likely that by then, the nervousness in the markets will have calmed down, expect investors to take the opportunity to pick up EGLD at a discount, pushing it further towards $490, by the end of next week.

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.