Elrond Price Prediction: EGLD double bottom projects a 28% gain
- Elrond price consolidating above long-term moving average.
- Relative Strength Index (RSI) not overbought on the 4-hour, 12-hour, or daily charts.
- March 26 volume was the largest on a positive day since March 4.
Like the entire cryptocurrency complex, Elrond price suffered losses last week, but the 15.7% rebound on March 26 was an exclamation point on the conviction of buyers. Within two days from the low, EGLD recaptured the 50-day simple moving average (SMA) and triggered a double bottom pattern.
Elrond price measured move puts the 0.786 Fibonacci retracement level in play
EGLD has discovered disciplined support on the 50-day SMA over the three trading days after mildly reversing the double bottom breakout. It is a bullish development that fortifies it as a short consolidation of a robust rebound.
The double bottom measured move of 28.3% will carry EGLD to $191.17 from the double bottom trigger level at $149.05. The gain is just above the 0.786 Fibonacci retracement level of the February crash at $190.02.
On the path to a solid profit stands resistance at the March high at $165.00, followed by the 0.618 Fibonacci retracement level at $168.81.
EGLD/USD daily chart
A daily close below the 21-day SMA would counter the bullish narrative and may empower the bears to retrace the bounce from the March 25 low. The downside should be limited to the 0.50 retracement level from the all-time low to the all-time high.
Author
Sheldon McIntyre, CMT
Independent Analyst
Sheldon has 24 years of investment experience holding various positions in companies based in the United States and Chile. His core competencies include BRIC and G-10 equity markets, swing and position trading and technical analysis.
