Since my previous analysis of the EGLD origin at the beginning of August, several features are now available, such as the launchpad with the Holoride project or the Maiar exchange with its governance token, MEX. This Elrond token, which can be used to accrue liquidity or bet, has seen its price explode with a $1.29 billion liquidity incentive program to launch the DEX. However, in the past few days, Mayar has been in trouble, and is no longer available until the team can make some changes. The community is disappointed in part by the price drop in EGLD.
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Amazing rise against bitcoin
The Weekly Evolution of EGLD vs Bitcoin (BTC) Apparently Deserves the Greatest Book Documentary.
After reaching its bottom in March 2020 at 110 satoshis, the EGLD index started a strong upward movement. You can see, in this graph, a rising wedge reflects bull march which is currently taking place. The red and green circles correspond respectively to the rejections on the resistance line and the bounces on the support line.
So that you can better understand where I came from with this analysis, you can see, below, the theoretical form of a rising wedge.
On the chart you can see a bullish price with tight fluctuation between support and resistance. Thus, a rest time This number should happen almostBut in what sense? In theory, since we are on a shape that is a signLoss of buying momentum With a bearish exit in 82% of cases, a Support line break more likely to happen.
However, in a bull market, theChampions Bearish numbers are more important. Of course, the bevel is no exception to this rule. Since the price is currently on the support line, we need to monitor this asset daily so that we understand as soon as possible if the downside breakout will be effective. In the event of a bounce on this support at 5380 satoshis As I write this analysis, we can look at a fairly quick return to 7500-7700 Satoshi.
Conversely, in the event of a downside breakout, you have set your first downside target at the level of the last major retracement in 3800 satoshiwhich is an interesting area where price technically reacted during the first half of 2021.
The end of a strong correction against the dollar?
While EGLD ATH was $245 in April, the past few weeks have seen as a whole New high at $544, which is a very important development in a few months. On the other hand, the origin is too fast Located with wick At $225 Only, giving a 58% retracement in 11 days if we maintain this extreme level.
Buyers came to the scene fairly quickly to purchase this drop, which for some seemed an opportunity, but for others. On the daily chart, with analysis being done upstream on the weekly range, I could see some Levels to maintain is mandatory On your mind for this end of the year.
previous weekly resistance area (279-297 dollars) is currently working as the support For the price, allowing EGLD to achieve a swipe back. In the event of a close below $279, the price is likely to continue correcting. Subsequently, 2 new areas will be taken into account in this scenario.
The first is in $255-260, the technical area that is based on price building in the past should be relevant. However, in the event of a breach of this level (yes, we are not immune to anything), the 237-240 dollars You’ll be the one to watch, in line with the ATH region for April.
On the other hand, if the current support is maintained with a close above $297, or even $300 if we rely on the importance of the round numbers in technical analysis, we can visualize returnin the first place, to $327. The previous resistance area was once breached from above, opening the door for a bullish rally towards a new ATH. On the far time horizon, we can consider the second region, and $416-428which corresponds to the highest weekly close recorded by EGLD.
With this analysis, whether it is against bitcoin or the dollar, you have several forms of support and resistance to watch for the next few weeks. Although the situation is more complicated against bitcoin with a rising wedge forming, a bearish breakout of the chart pattern will not automatically translate into a decline against the dollar. In fact, it is a pair resulting from the price ratio between EGLD and BTC. In this way, if the value of the latter increases, it stands to reason that the price of EGLD in Satoshi is declining. For its part, against the dollar, the Elrond token managed to maintain its previous resistance. It remains to be seen if that will be the case in the coming days.
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