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HomeCryptoCrypto Nugget: Elrond (EGLD) Price Crashes, But How Far Will It Go?

Crypto Nugget: Elrond (EGLD) Price Crashes, But How Far Will It Go?

Recent events in the cryptocurrency market and issues that have arisen on theMaiar decentralized exchange haven’t been much help for the price of the EGLD cryptocurrency. The community is tighter than ever, a new launchpad is imminent and the team continues to communicate and work in the indifference of the bear market. However, at present, the most optimistic investors face a wall of sellers who are determined to preserve the current momentum. In this Wednesday Crypto Nugget news, let’s take a look at the charts of the EGLD asset to determine the path the price will take over the next few weeks.

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A complex situation on a weekly scale

EGLD rate against the dollar weekly

After an all time high at 544 dollars, EGLD entered a powerful downtrend as it easily broke through its technical supports. The first area was that of 200 dollars. Resistance then support for a few weeks, it became resistance again by preventing the price, twice, from resuming an upward trend. Thus, the downtrend accelerating, technical areas had little use. The price is currently around 40 dollars, it is in the “vacuum” on a weekly scale.

The next key area now sits at $28. A weekly technical level that is even more relevant on a daily basis, which we will see later. Prior to this level, EGLD no longer has any major areas it could react to. Thus, it does not seem wise to intervene in rising or falling markets if you are not an experienced trader. Besides, what would happen if the zone was lost with a close below $21.65 (low of the gray zone)? The new bearish target could be around $10.

However, we are not there yet. Will the buyers come forward to attempt a reintegration of support above $66? Will the latter rather fail with a rejection of the price on this zone? The next few days will be important, dictated by the macroeconomic situation and tonight’s FOMC. For now, on a weekly scale, you need to keep the two weekly zones in mind to analyze the reaction when the price is there.

A temporary buying force on EGLD?

Price of the EGLD cryptocurrency against the dollar on a weekly scale
EGLD price against the dollar on a daily basis

On a daily basis, price movements are much more detailed. This allows us to refine our understanding of the price structure. Currently, the price is reacting on the January 2021 resistance. Is this a relevant low? A temporary shortness of breath of the sellers before starting a new bearish wave? If the bullish scenario comes to fruition, there is two areas to monitor : the first to $54, a technical level where buyers had reacted in the past. Here, would it be the preservation of the price below this level by the sellers? In the event of a bullish breakout, the second level will be the support zone at $66.

However, we have to be careful. A resumption of $54 will not automatically result in a return to $66. The sellers are always on the alert and seem in no way exhausted. Conversely, what could happen if the price closes below the $37, the technical level of the beginning of 2021? There will be a continuation of the downtrend with a return, first, to the top of the weekly technical zone at $28. It is very likely to witness the formation of a price structure if it arrives in this area.

But then, what if the sellers continue to keep pressure on EGLD’s price? As I told you, we will have to monitor the $10.28. But before that, we have a former daily resistance at $13.91, as of the end of 2020. It could operate as a technical zone for the buyers. Of course, again, nothing is absolute in the cryptocurrency market. Perhaps we will not have the opportunity to review these levels. However, it seems important to be prepared for different eventualities so as not to be surprised.

Here we are at the end of the Crypto Nugget, your weekly analysis of an altcoin selected by you on our social networks. Now you have in mind the key levels on EGLD. You also know the different scenarios that will allow you to be flexible in the markets. Remember one thing: the weekly and daily trend is bearish. Thus, it is necessary to favor a bearish scenario. At best, a few bullish retracements could allow shorting opportunities. Of course, all this must be done with great rigor in the management of capital. Be on your guard, the FOMC is approaching. Volatility could hurt buyers but also sellers !

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