EGLD Price Analysis: Retest Reversal May Validate Upcoming Bull Run
On June 19th, the Elrond(EGLD) price gave a bullish breakout from a two-and-a-half-month-old resistance trendline. Furthermore, the buyers’ failed attempt to surpass an immediate resistance of $56.3 could result in a retest reversal to the descending trendline. Can buyers sustain this breakout opportunity?
Key points:
- The EGLD price faces supply pressure near combined resistance of $56.83, and the 20-day EMA
- The EGLD buyers sustain the trendline breakout; the potential rally could present a 285.6% gain
- The intraday trading volume in Elrond coin is $77.7 Million indicating a 15% gain.
Source- Tradingview
From April to Mid-June, the EGLD/USDT pair showed a constant downtrend responding to a descending trendline. In these two and a half months, the altcoin depreciated 80% as it reached a new 2022 low of $38.39.
However, the EGLD buyers managed to hold support above the $40.5 mark, bolstering them to break the dynamic resistance trendline. On June 19th, altcoin gave a bullish breakout from the overhead trendline, offering a recovery signal to coin holders.
Furthermore, the coin buyers attempt to carry the breakout rally higher; however, the supply pressure at the immediate resistance of $56.3 limits the bullish activity. The expected reversal should test the breached trendline for new support.
If the buying momentum sustains, the EGLD price should rise higher, and as per the technical setup, it could hit the $214 mark.
Conversely, if buyers failed to sustain the trendline breakout, the altcoin would be threatened to lose $40 support.
Technical Indicator
Among the downsloping EMAs(20, 50, 100, and 200), the coin price facing dynamic resistance from the fast-moving 20-day EMA indicates aggressive selling in the market. This EMA slope aligned with the $56.3 resistance bolsters sellers to trigger a retest phase.
The VI+ and VI- slopes drawing close to each other indicate growth in bullish momentum. A bullish crossover in indicator lines may encourage buyers to sustain through the expected retest.
- Resistance levels: $56.8 and $67.4
- Support levels: 40.75 and $30.45
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