Elrond (EGLD) completed a nearly two month consolidation with a strong breakout on November 3rd. It hit a new all-time high two days later.

Day outlook

EGLD has been rising along with the ascending support line since July 20th.

After hitting a new all-time high of $ 303 on September 14, the token fell significantly. However, it bounced off the support line again (green arrow) and then resumed its upward movement. The rebound increased the importance of this line during the upward movement.

After a consolidation phase that ended with a further upswing (blue arrow), EGLD broke out and reached

Since the breakout, the USD 295 area is now expected to act as support as it previously acted as resistance.

Technical indicators on the daily timeframe support the continuation of the uptrend.

The MACD, which is made up of the short and long term moving averages (MA), is moving up. This means that the short-term trend is increasing faster than the long-term trend.

The RSI, a momentum indicator, is above 50. This is a sign that momentum is increasing. The last time this happened (black circle) there was a strong rally to the ATH level.

Daily EGLD / USDT chart | Source: TradingView

Count waves

Trader @Thebull_Crypto tweeted an EGLD chart showing the breakout. He pointed out that the token can grow by 50% or more.

The wavenumber also offers a bullish outlook. The period from September 4th to October 25th looks like an ongoing flat correction.

This is due to the price overlap throughout the move. Running flat is a type of bullish correction where the bottom of wave C does not reach the bottom of wave A. This is considered a sign of strength as the price was unable to fall to the previous lows. This is usually followed by a strong upward movement.

Daily EGLD / USDT chart | Source: TradingView

The number of long-term waves is not entirely clear. However, it is possible that all of the upward move since July was part of the first wave, with the period marked as wave two (orange).

In this role, EGLD has just started wave 3, which is usually the largest and hottest wave. As a result, it is expected to surge to all-time highs and beyond.

Short term movement

When measuring the short-term upside move, the Fib retracement support area of ​​0.5-0.618 is between $ 264-276 and also coincides with the long-term rising support line.

It is therefore likely that EGLD will recover from this zone and continue the uptrend.

EGLD / USDT 2-hour chart | Source: TradingView

You can see the price of EGLD Here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

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