• 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.


Like this article? Help us with some feedback by answering this survey:


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP