Elrond (EGLD) breaks long-term resistance, will the upward move continue?

Elrond (EGLD) has crossed a descending resistance line formed since April 12th.

While the technical indicators are rising, the upward trend is not yet confirmed.

EGLD outbreak

Elrond has fallen along with a descending resistance line since April 12th. On that day, it hit an all-time high of $ 245.80. The downtrend continued through June 22nd when it fell as low as $ 67.39.

The low is linked to bullish divergences in the MACD, RSI and the stochastic oscillator. After that, the RSI moved above 50 and the stochastic oscillator created a bullish cross. Therefore, the technical indicators are rising.

EGLD has risen since then and broke the descending resistance line on July 3rd. It hit a high of $ 107.81 before falling to the bottom.

The main resistances are at $ 127 and $ 150. These goals are the 0.382 and 0.5 Fib retracement resistance values, respectively.

Daily EGLD / USDT chart | Source: TradingView

The two hour chart shows a confluence of support levels at $ 80. This is the 0.5 fib retracement support and an ascending support line.

Therefore, after reaching this level, the EGLD is expected to increase.

EGLD / USDT 2-hour chart | Source: TradingView

Count waves

Trader @TheTradingHubb outlined an EGLD chart indicating that if it declines further, there is a possibility of a dip into the $ 40 region.

Source: Twitter

The fact that all of the move has been contained in a parallel descending channel since May 19th suggests that it may indeed be a shallow correction.

If EGLD breaks below the $ 80 zone, which is also the centerline of the channel, further downward movement towards the channel’s support line (near $ 40) is possible.

EGLD / USDT 2-hour chart | Source: TradingView

EGLD / BTC

EGLD / BTC has been falling since February 8 when it hit an all-time high of 0.005 satoshis.

During the decline, it bounced off the satoshi support area of ​​0.022 multiple times. Although the price broke below below on June 28, the decline was only a deviation before an upward move helped the price rebound to this level (red circle). The whole drop looks like a finished ABC correction structure.

Thereafter, EGLD broke above a descending resistance line drawn from the aforementioned February 8th high.

Similar to the USD pair, the technical indicators are bullish on the daily timeframe.

The closest resistance is at 0.0034 satoshis.

Daily EGLD / BTC chart | Source: TradingView

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.

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