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

Recent Events in the Cryptocurrency Market and Issues Occurred on theMaiar decentralized exchange didn’t help much for the price of the EGLD cryptocurrency. The community is stronger than ever, a new launch pad is near and the team continues to communicate and work in the indifference of the bear market. Right now, however, the most optimistic investors are faced with a wall of sellers determined to maintain the current momentum. In this Wednesday’s Crypto Nugget news, let’s take a look at the EGLD asset’s charts to determine the path the price will take in the coming weeks.

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A complex situation on a weekly scale

EGLD rate against the dollar weekly

After an all time high on 544 dollar, EGLD entered a powerful downtrend as it broke through its technical support with ease. The first area was that of 200 dollars. Resistance then a few weeks of support, it turned into resistance again by preventing the price from resuming an uptrend, twice. So the declining trend is accelerating, technical rooms were of little use. The price is currently around $40, it is in the “vacuum” every week.

The next key area is now at $28. A weekly tech level that is even more relevant on a daily basis, which we’ll see later. Prior to this level, EGLD no longer has any key areas it could respond to. So it doesn’t seem wise to intervene in rising or falling markets if you are not an experienced trader. By the way, what would happen if the zone was lost with a close below $21.65 (lowest of the gray zone)? The new bearish target could be around $10.

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

A temporary purchasing power 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 understanding the pricing structure† Currently, the price is reacting to the resistance of January 2021. Is this a relevant low? A temporary shortness of breath from the sellers before another bearish wave kicks in? If the bullish scenario comes true, there is: two areas to check : the first one $54, a technical level that buyers had responded to in the past. Could it be the sellers keeping the price below this level? In the event of a bullish breakout, the second level is the support zone at $66

However, we must be careful. a resumption of $54 does not automatically result in a return to $66. The sellers are always on the lookout and don’t seem exhausted in any way. Conversely, what could happen if the price closes below? $37, the technical level of early 2021? There will be a continuation of the downward trend 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 when it arrives in this area.

But what if the sellers continue to put pressure on the price of EGLD? As I told you, we will have to monitor the $10.28† But before that, we have a former daily resistance of $13.91 as of late 2020. It could act as a technical zone for the buyers. Of course, again, nothing is absolute in the cryptocurrency market. We may not have a chance to review these levels. However, it seems important to be prepared for various 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 the key levels on EGLD in mind. You also know the different scenarios that allow you to be flexible in the markets. Remember one thing: the weekly and daily trend is bearish. So it is necessary to favor a bearish scenario. At best, a few bullish retracements could present short opportunities. All this, of course, must be done with great precision in the management of capital. Be on the lookout, the FOMC is approaching. Volatility can harm buyers but also sellers

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