Elrond Network’s EGLD token has rallied to $25 and could retest resistance around $28 short term
The price of Elrond token has risen sharply over the past 24 hours, continuing an upside that has seen bulls strengthen above a multi-month descending resistance line. The uptrend to $25 also means the break from a round bottom pattern could see EGLD/USD touch a new all-time high (ATH) in the $28—$30 region.
At the time of writing, EGLD is trading around $24.64, up 30% on the day and 89% over the past seven days.
EGLD/USD daily price chart. Source: TradingView
Elrond price touched a low of $6.49 on 29 October, after three months of decline. However, since the breakout to the 50-SMA and 20-SMA levels, EGLD has traded higher to complete a round bottom pattern.
The current upside follows an uptick in overall sentiment in crypto, plus Elrond’s expected listing on eTorox.
As can be seen in the daily chart above, the price action also includes breaking above a long-term descending resistance line that had capped prices since July.
A retest of the 61.8% Fibonacci retracement level ($14.9) opened up the path to the 50% Fib retracement level ($17.63).
Notably, the $17 price level is critical to bulls. The chart shows EGLD/USD has in the past three months retested the level for support. Staying above it is therefore crucial to bulls.
According to the crypto trader and technical analyst Michael van de Poppe, breaking higher and turning the level into support would pave the way for bulls to reach $28—$30.
“Massive strength on this one, still. Breaking through that resistance zone at $17 is a bullish signal. If that level flips for support, continuation is likely towards $28—$30, as described in the chart.”
Elrond price prediction chart. Source: Michael van de Poppe on Twitter
Elrond’s current price (around $24 at the time of writing) is above the 23.6% Fibonacci retracement level ($23.56).
The daily RSI and the MACD indicator suggest there is room to go higher. If bulls retain the upper hand, increased upward pressure could help push EGLD to a new ATH around $35.
On the downside, major support levels are around the 20-SMA ($13.97) and the 50-SMA ($10.35).