EGLD Price Analysis: Retest Reversal May Validate Upcoming Bull Run

Brian Bollinger
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elrond price drop

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? 

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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.

EGLD/USDT ChartSource- 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.

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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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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
From the past 5 years I am working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. Reach out to me at brian (at) coingape.com
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.