EGLD Technical Analysis: Will Elrond Touch The $42 Ground?
Table of contents
The EGLD price action displays a falling trend under the influence of the 50-day EMA leading to a descending triangle breakout. The breakout rally shows potential to reach the $42 mark. But will the intraday growth push the retest phase back above the broken range?
Key Points:
Source - TradingView
EGLD Technical Analysis
The EGLD price action shows a bearish turnaround from the $67 resistance level ushering a 26% decline in market value to reach the $48 support zone. However, the buyers successfully delayed the $48 fallout with a triangle formation. Additionally, the recent reversal from the EMA results in a bearish breakout.
The spike in trading volume supports the breakout candle, but the intraday growth of 2.70% undermines the bearish influence. The bears must push the price back from the broken $48 zone to create higher price rejection and relieve the pressure.
If the bearish momentum increases, the EGLD prices will reach the bottom support at $42. However, a bullish reversal in Elrond prices above the $48 support zone will start a bull cycle crossing the psychological mark of $50 to test the resistance trendline.
Technical Indicators
The sideways moving RSI slope below the 14-day SMA shows a bearish inclination reflecting a growing bearish side ready to plunge the EGLD market value. However, the minuscule gap between the MACD and signal lines offers a bullish crossover possibility with a slight jump in buying pressure. The technical indicators maintain a bearish bias.
Resistance Levels - $48 and $50
Support Levels - $42 and $30