Elrond (EGLD) Price It is expected to break the $56.50 resistance area and accelerate its growth later,
EGLD price has been trending upwards since breaking out of a descending wedge pattern on 30th Sept. Currently, Elrond price is in the process of breaking the $57.50 resistance area. Since this is both a horizontal and Fib resistance level, a breakout above it can greatly accelerate the rate of increase.
The daily RSI supports the upside potential as it moves above 50. However, it is worth mentioning that the indicator is in the process of generating a bearish divergence (green line). If divergence is confirmed with EGLD price rejection, it would be expected to initiate a reversal.
Therefore, whether Elrond price manages to close above the $57.50 area or is instead rejected, it will likely determine the direction of its long-term future movement.
Short Term Elrond Price Prediction
The four-hour chart provides a more bullish outlook. The first reason for this is the significant bounce back after Elrond price dropped to the 0.5 Fibonacci retracement support level (green circle). The formation of a very long lower wick later is a strong sign of buying pressure.
The second reason is that the main resistance area appears to be at $56 when zooming in. This area first acted as resistance on October 4th (red sign), before EGLD price moved above it on October 10th.
An upcoming retest of the area and its recognition as support (green sign) is an indication that the price is expected to break higher and continue rising.
Future EGLD Price Movement Towards $76
It is possible that the entire Elrond price movement since the June 15 low is an ABC formation (white). If so, the price is currently in a C wave. Subwavelength calculations are given in black.
Giving waves A:C a 1:1 ratio would yield a future value of $76. This will also validate the resistance line of the channel which contains the entire upward movement so far.
Currently, ELGD price is in the process of moving above the middle of the channel (red circle). Doing so will go a long way in confirming the scenario.
Conversely, a decrease below the sub-wave to low (red line) would invalidate this EGLD price forecast and suggest that new lows are in store.
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