EGLD Technical Analysis: Will Elrond Prices Sustain Above $50?
Table of contents
Key technical points:
Past Performance of EGLD
The crypto crash in April has taken a significant toll on EGLD prices as it started a long streak of lower high formation. The downtrend drops to $40 within three months and accounts for an 80% drop in market value since April. However, the recent double bottom reversal from $40 challenges the 20-day EMA and the long-coming resistance trendline.
Source- Tradingview
EGLD Technical Analysis
The bullish reversal in EGLD prices surpasses the $50 mark and has jumped 20% over the last 24 hours. However, the drop in trading volume questions the sustenance of the uptrend. Hence, bullish traders must wait for the price action confirmation to avoid a reversal trap. The RSI slope shows a growth in the underlying bullishness and a bullish divergence in the double bottom. Moreover, the bullish crossover in the MACD and signal lines represent a buying opportunity as the positive histograms start a rising trend.
The price drop in Elrond prices results in a drastic drop in EMAs, resulting in a bearish alignment. Moreover, the 20-day EMA(blue) provides constant supply inflow to keep the bearish pressure on the price trend. In a nutshell, the EGLD technical analysis forecasts a boom in market value if the prices sustain above $50.
Upcoming Trend
Suppose the increased buying pressure sustains, resulting in the trendline and the 20-day EMA breakout; EGLD prices will jump to $75.
Resistance Levels: $60 and $75
Support Levels: $40 and $30