Elrond's $eGLD Technical Analysis

Elrond is a blockchain platform that relies upon the use of the sharding structure for high throughput and scalability. 

Elrond Network makes use of proof-of-stake as a consensus mechanism where nodes are required to stake their eGLD tokens to take part in the validation process. They have presented the "Secure Proof of Stake" approach, which removes the proof-of-work model from the protocol. All the eligible validators in the network are subject to a randomness selection mechanism. But for now, let's take an overview of the price action of their token.

As we can see in the chart, the $eGLD price had been following a very bullish move, flying from $67 on July/21 straight to an all-time high of $544 at the mid-end of November/21. After this spectacular price action, we can see a huge 80% correction, while the price breaks its uptrend line and descends straight to the $100's zone making its support and correction right after.

The price kept lateralized in the $100 - $200 zone range from January/22 until March/22 where we can spot an attempt to break the downtrend line formed in the correction, a slight decrease in the volume traded since its ATH and the formation of another smooth uptrend line. After this breakout attempt, the price kept above the downtrend line and it seems to be consolidating in the $150 zone for some days, trading below the 20 MA and the past month's Fibonacci pivot point as the day of writing. As we can expect a correlation with $BTC price action despite Elrond's achievements, we can set two main scenarios for the upcoming days, a bullish and a bearish one.

Bullish

If $eGLD keeps trading above the $150 zone and manages to climb its way up, breaking the $180 resistance zone, followed by a good volume and general bullish scenario, it is expected to face some strong resistance at the $200 key level, causing a smaller correction and strength gathering to keep pushing through the $230-$260 resistance zone. We might see some consolidation at those zones after some major move, but if broken, there is a great chance for the price to revisit the past ATH.

Bearish

If this correction and general uncertainty in the market keep pushing prices down for long, there is a chance for the $eGLD price to lose its uptrend line support below $140, which may lead to a larger down move, putting the price below the last bottom. In this scenario, we might be revisiting the $111 support, and if lost, a drop to the $100 key level and below is expected.

Disclaimer

The information in this article is not financial advice. It is for educational and informational purposes only. We are not responsible for any losses that may incur as a result of any investment directly or indirectly related to the opinions, thoughts, information, or strategies provided in this article. 

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