Posted 2 hours ago
On June 19, Elrond (EGLD) price gave an upside break from a two and a half month old resistance trendline. Additionally, the buyers’ failed attempt to break above an immediate resistance at $56.3 could lead to a retest of the descending trendline reversal. Can buyers sustain this breakout opportunity?
- EGLD price is facing supply pressure near the combined resistance of $56.83 and the 20-day EMA
- EGLD bulls support trendline breakout; the potential rally could present a gain of 285.6%
- The intraday trading volume on the Elrond coin is $77.7 million, indicating a gain of 15%.
Source- Commercial view
From April to mid-June, the EGLD/USDT pair showed a consistent downtrend responding to a descending trend line. In these two and a half months, the altcoin depreciated by 80% reaching a new low of 2022 at $38.39.
However, EGLD buyers managed to hold support above the $40.5 mark, strengthening them to break the dynamic resistance trendline. On June 19, altcoin gave an upside break of the overhead trendline, providing a recovery signal to coin holders.
Additionally, coin buyers are trying to carry the rally higher; however, supply pressure at the immediate resistance of $56.3 is limiting bullish activity. The expected reversal should test the broken trendline for new support.
If the buying momentum continues, the price of EGLD should rise and depending on the technical setup, it could reach the $214 mark.
Conversely, if buyers fail to hold the breakout of the trendline, the altcoin would be in danger of losing support at $40.
Among the downward sloping EMAs (20, 50, 100, and 200), coin price against the dynamic resistance of the fast-moving 20-day EMA indicates aggressive selling in the market. This EMA slope aligned with the $56.3 resistance prompts the sellers to trigger a retest phase.
VI+ and VI- slopes approaching each other indicate increasing bullish momentum. A bullish crossover of the indicator lines may encourage buyers to hold during the expected retest.
- Resistance levels: $56.8 and $67.4
- Support levels: $40.75 and $30.45
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