Like so many other cryptocurrencies in the market, Elrond has reported steady gains at the start of the week. The coin in fact appears to be getting ready for a massive bull run after it managed to break out of a two-month resistance trendline. But how far can the coin go, and will the uptrend actually last? Here are some pointers:
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EGLD has managed to convert $56.3 from resistance to support
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The coin has struggled to cross above this price for the best part of 3 months
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The breakout presents a real prospect of a decent uptrend for EGLD
Data Source: TradingView
How far can EGLD go?
At the moment, EGLD appears to be setting the stage for a run towards $75 or thereabout. This will represent a gain of 25% from the current price. Crossing above $56.83 is a major feat for the coin. The price is sandwiched between long-term resistance and EGLD’s 20-day EMA.
At press time, the coin was selling for slightly above $60. This means that EGLD has surged past a long-term resistance trendline while still beating off its 20-day EMA. These are very legit bullish signs that should give any investor some hope.
However, there are still some limits as to the overall upside. For now, a modest 25% surge appears likely, but it’s really hard to say how far the coin can sustain these gains. After all, the crypto market is just slightly recovering after last week’s sell-off.
How to trade this setup
EGLD of course offers a decent bullish setup. But only a short-term play makes sense. So, give it a day or two and see if the price consolidates above $56.4.
After that, buy and exit at $75 or thereabout. As for long-term buyers, this is still a good time to buy owing to the huge dips we have seen over the past 6 months.