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Elrond was rising before leveling off at around $54.40. The EGL price has recently broken through a key price resistance level, rising above $56.37.
On weekly, biweekly, and monthly time frames, Elrond has been performing bullishly, based on data by Coingecko, Thursday.
This bullish movement may have been prompted by recent events. On September 22nd, Opera users who have enabled the built-in crypto wallet will be able to utilize EGLD. The market may react to these events by increasing the price.
But will EGLD’s price be able to continue to push above the $55 barrier – or will that level finally prove to be too much to overcome? Bulls are eyeing the $65 mark, but even that proves to be a major challenge.
A Clue To The Puzzle That Is Elrond
The token is trading at $56.19, which is a loss as of this writing. The recent market action has established a bullish cup and handle pattern, which should help push prices through the $57.84 barrier, data from Coingecko show.
At the time of writing, both the RSI and Chaikin’s money flow index show bullish convergence, which is excellent news for the altcoin as a whole. The momentum indicator, however, shows that bullish enthusiasm is losing steam.
Despite the construction of a cup and handle, this may be a negative indication for the market. The 50-day and 100-day simple moving averages are also providing dynamic support for the potential bull run.
EGLD: Bull – Or Bear Run?
Now that the technicalities are out of the way, we can claim that Elrond is currently slowing down. This may be an indication that a correction phase will occur in the next few days or weeks.
With present support around $54.40 and resistance at $57.80, the bulls have a very narrow margin of error.
The momentum deceleration may propagate to other indications, compelling bulls to make decisions that will inevitably exert downward pressure on the coin.
The prior rejection of $57.80 may signify the beginning of a market correction. The present sideways price trend does not portend well for the token, particularly in the immediate term.
The tight ascending triangle for the handle of the cup will not aid EGLD investors and traders in achieving the anticipated relief rally.
As of this writing, bears have seized control of the Elrond market and are creating a downturn. Traders should focus on shorter time frames.
If the bears ever gain sufficient momentum, a defense at $51.76 and a fallback at $46.16 will halt the downturn.
EGLD/USD pair trading at $57.97 billion on the daily chart | Featured image from Bankless Times, Chart: TradingView.com
Disclaimer: The analysis represents the author’s personal views and should not be construed as investment advice.