Crypto Nugget: Elrond (EGLD) Price Plummets, But How Far Will It Go?

Recent events in the cryptocurrency market and issues that have emerged on theMaiar decentralized exchange they haven’t been of much help to the price of the EGLD cryptocurrency. The community is stronger than ever, a new launch pad is imminent and the team continues to communicate and work amid the indifference of the bear market. However, at the moment, the most optimistic investors face a wall of sellers determined to preserve the current momentum. In this Wednesday Crypto Nugget news, we take a look at the EGLD asset charts to determine the path the price will follow in the coming weeks.

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A complex situation on a weekly scale

EGLD rate against the dollar weekly

After an all time high 544 dollars, EGLD entered a strong downtrend as it easily broke through its technical supports. The first area was that of 200 dollars. Resistance then support for a few weeks, it became resistance again preventing the price, twice, from resuming an uptrend. Thus, the downward trend in acceleration, the technical areas were little used. The price is currently around $ 40, it is in the “vacuum” on a weekly scale.

The next key area now stands at $ 28. An even more relevant weekly technical level on a daily basis, which we’ll look at later. Prior to this level, EGLD no longer had important areas on which it could react. Therefore, it does not seem wise to intervene in rising or falling markets unless you are an experienced trader. Also, what if the zone loses on a close below $ 21.65 (gray zone low)? The new bearish target could be around $ 10.

However, we’re not there yet. Will buyers step forward to attempt a reintegration of support above $ 66? Will the latter fail rather with a rejection of the price on this zone? The next few days will be important, dictated by the macroeconomic situation and by tonight’s FOMC. For now, on a weekly scale, you need to keep the two weekly zones in mind to analyze the reaction when the price is there.

A temporary buying force on EGLD?

Price of the EGLD cryptocurrency against the dollar on a weekly scale
EGLD price against the dollar on a daily basis

On a daily basis, price movements are much more detailed. This allows us to refine ours understanding the pricing structure. Currently, the price is reacting to the resistance of January 2021. Is this a significant low? A temporary shortness of breath on the part of the sellers before starting a new bearish wave? If the bullish scenario is realized, there is two areas to monitor : the first a $ 54, a technical level to which buyers had reacted in the past. Here, would it be the keeping of the price below this level by the sellers? In the event of a bullish breakout, the second level will be the support zone a $ 66.

However, we must be careful. A revival of $ 54 it won’t automatically result in a return at $ 66. Sellers are always on high alert and by no means seem exhausted. Conversely, what could happen if the price closed below the $ 37, the technical level of early 2021? There will be a continuation of the downtrend with a return to the top of the weekly technical zone at $ 28 first. It is very likely that a price structure will form if it arrives in this area.

So what if sellers continue to keep EGLD price pressure? As I told you, we will have to monitor the $ 10.28. But first, we have a previous daily resistance at $ 13.91, as of late 2020. It could work as a technical zone for buyers. Of course, again, nothing is absolute in the cryptocurrency market. We may not have the opportunity to revise these levels. However, it seems important to be prepared for various eventualities so as not to be surprised.

Here we are at the end of Crypto Nugget, your weekly analysis of an altcoin you have selected on our social networks. You now have in mind the key levels about EGLD. You also know the different scenarios that will allow you to be flexible in the markets. Remember one thing: the weekly and daily trend is bearish. Therefore, it is necessary to favor a bearish scenario. At best, some bullish retracements could allow for shorting opportunities. Obviously, all this must be done with great rigor in capital management. Be on your guard, the FOMC is approaching. Volatility could hurt buyers but also sellers !

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