In this Monday AT news, we will look at the EGLD cryptocurrency, the native token of the Elrond blockchain. After having reached our bearish objectives in our previous analysis dated August, let’s come back to it to update its situation and understand the dynamics in which it could enter during the next few weeks. Moreover, it should be noted that a potential catalyst will arrive in the markets in a few days: the data on inflation for the month of September. Depending on the figures, the market could react abruptly.
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EGLD has just freed itself from its daily POC
These were complicated for EGLD! It has continued to decline, reaching 45.7/46.5 dollars, an area where there is technical support as well as the VAL of the volume profile. Not having lost this level at the close, the asset was able to overcome the trio of EMA 13/25/32 which had been resistance for the price since the end of August. In many cases, these moving averages help identify trend reversals. However, it is not magic, there are also many fake breakoutswhich alerts you not to stop at a single element to build a strategy.
A few days ago, the asset was able to overcome significant resistance: the confluence of the POC (red line) as well as the MA100. For several weeks, EGLD was not able to break free from 54 dollars, it had been rejected on this level before continuing its decline. Now that the price is above and has operated a pullback, the big question is whether the level will be held to make it a support. Let’s move on to a smaller time scale to determine bullish and bearish objectives depending on the direction the price will take.
Will the bullish momentum give way or continue?
Using a smaller time unit (one candle equals four hours of price action), the price action is much better understood. You can see the relevance of the POC on which EGLD has created local support. As long as it is not lost, we can envisage the continuation of the bullish momentum over the next few days. In this context, what are the levels to monitor? An interesting level is just above at $58.12. If EGLD gets out of it, it will probably go back to $60.6 on the VAH. If we are optimistic and think of a rebound in the markets over the next few weeks, a return of the price to $63.65 is quite possible.
However, if the POC is lost, EGLD’s return to $52.36 or even $51.19 will be quick. Besides the fact that these are interesting technical levels, in this price zone is the EMA 200 as well as the MA 100. The price could react on it and rebound, it would be the opposite of what it did during the August with the multiple bearish rejections. However, if EGLD fails to hold these levels and gets pushed back to the current zone on the daily timescale, we will need to be flexible and have a downside bias with targets at $48.99 and $45. .7/$46.5.
Here we are at the end of this analysis of the EGLD token! Currently, the asset is doing quite well in the context of a bear market where the majority of assets are currently in a range configuration. It is clear that the current situation is not easy, reading the markets is complex. However, by monitoring the levels identified in the article, everything should be fine. Now you are prepared for the different scenarios and in which cases they could be validated. Take your precautions, the week is likely to be hectic and could surprise both buyers and sellers with significant spikes in volatility.
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