The state of the current market does not help the case of Altcoins. EGLD the token of Elrond is no exception to the rule. With a 93% drop from its highest ever, we can say that the sky has darkened somewhat. However since the beginning of June it seems to have reached a rather stable price zone. It is since the end of June, therefore, that EGLD has been oscillating between 49 dollars and 63 dollars. Ranges are structures that are fairly simple to analyze in general, so last night’s close on EGLD can give us some clues as to the behavior of the price to come.
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EGLD fence: a welcome boost!
As stated above, we can see that EGLD has been moving through a range since late June. This range is located in the price zone ranging from 49 to 63 dollars. You can see he’s pretty well respected. When the asset touches a terminal and is rejected, it will directly visit the opposite terminal. The day before yesterday, the price rejected the lower limit which acts as support. So if the logic of the range and of the last few days continues, we could therefore see an EGLD return to visit the 63 dollars.
Of course this is to be correlated with the news and the course of Bitcoin in order to bring a little granularity to my point. Take a closer look at last night’s close, the Fed’s speech, raising rates again propelled Bitcoin, ETH and many altcoins higher. All of this has brought us to a close on EGLD which encompasses the last big bearish candle! So I actually expect that we will retest the upper limit of the range. I do not exclude, if there is a break in the range, a wick on the Order Block located at 69 dollars in order to drive out the liquidity of the shorts.
Two prices to be validated after yesterday’s close on EGLD
As we can see on the four-hour timescale zoom, although tonight’s close is encouraging, I still have two prices to break and validate to be sure to visit the upper limit of the range. Indeed, these two prices define in this time scale an uncertain price zone. Given yesterday’s rise after the Fed’s announcements, we really need to validate these prices before correcting.
From my point of view, the ideal climb to visit this top of the range would be to break these two prices, at 56 dollars and 58 dollars, and to retest them each time. This is what would make a healthy rise in the asset to fetch the $63. Beware, however, of the possibilities of fake out on these price breakouts. Especially since the 56 dollars have already played the role of resistance in early July. We must watch how EGLD will react to this price during the day. We can also zoom in further to try to identify new areas.
A resistant price in H1 before being able to claim a real rise
By zooming in on the hourly scale we can even better see the resistant side of the 56 dollars. We can see that it has already acted as resistance on hourly candles six times. And we can see it was a support zone last week. It is therefore very important not to be rejected by this price. Unfortunately, as of this writing, the current hourly candle breaks the neckline of a double top.
If this neck line is broken and validated then I don’t think we will retest the 56 dollars and therefore even less the top of the range. Here we have three possibilities: test and break of the $56, rejection of the $56 and retest of the neck line at $54.5, direct break of the neck line. In the latter case we will directly retest the bottom of the range at 49 dollars. Watch this hourly unit therefore. These two prices at 54 and 56 dollars we will give the behavior of EGLD for this day. An oscillation between the two cannot be ruled out.
The Elrond token entered a range at the end of June and has so far respected the codes of this structure. However last night’s close left EGLD in an undecided price zone. Oscillating between an old resistance and a double top which took shape in the night, the behavior of EGLD is undecided as long as we do not leave this zone. However an exit with validation of the zone will give us a clear direction of the asset.
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