Elrond Technical Analysis: EGLD 250% rally seems unstoppable despite technicals spelling doom

Elrond rally seems unbothered by the dwindling technical signals, perhaps due to the golden cross formation.
Multiple sell signals are like to come into the picture in the coming sessions; hence the bullish outlook is in jeopardy.

Elrond has continued to rally despite the sluggish price action among altcoins in the top 100. The token is up over 250% from the lows traded in October and November. The first two weeks of December have been extremely successful for EGLD. However, according to technical levels, the rally is in jeopardy and could stall anytime.

Multiple sell signals could cut short the massive rally amid the fear of missing out (FOMO) and perhaps speculation for gains above the yearly high at $33. The sell signals on several charts suggest that a reversal is imminent. For now, Elrond is trading at $24 after spiking in successive bullish candles.

Elrond’s initial recovery phases occurred on account of a golden cross formed within its daily chart. The technical pattern developed the moment the 50-day moving average crossed above the 100-day moving average. Some of the most prominent technical analysts in the industry use this pattern as one of the most precise buy signals that could kick a bull run.

EGLD/USD 4-hour chart

The bullish outlook is likely in trouble after the TD Sequential presented multiple sell signals on different charts. Moreover, more sell signals would be exhibited in the coming sessions, especially on the 4-hour and daily charts.

EGLD/USD 4-hour/12-hour/daily charts

The bearish outlook has manifested or will manifest in green nine candlesticks. If validated, the calls to sell may lead to extensive losses, probably send EGLD back to the drawing board at $6 (November low).

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.