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Crypto Analysis | Elrond EGLD

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TobeTada
@tobetada
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Good day Hiveians!

Join me in analyzing the crypto markets!

 

Let's have a technical look at the Elrond token

I haven't made a post about this coin before; so what is Elrond?

Elrond is a blockchain protocol that seeks to offer extremely fast transaction speeds by using sharding. The project describes itself as a technology ecosystem for the new internet, which includes fintech, decentralized finance and the Internet of Things. Its smart contracts execution platform is reportedly capable of 15,000 transactions per second, six-second latency and a $0.001 transaction cost.

https://coinmarketcap.com/currencies/elrond-egld/

On the technical side of things, it is an interesting coin. It has risen astronomically in a short period from less than a $ to more than 200$. All hype? Maybe... but let's look at the charts:

There is an impressive upward momentum coming all the way back from March 2020. So far it has stayed above this support which is impressive because many coins have broken their similar support lines established in the same time frame. Could this bullish sentiment hold?

Compared to bitcoin its recent correction was much more extreme at almost 80% (as opposed to 55% BTC). So there is definitely downward potential as well.

There is still about 30% to go to this support line. However, as stated before if bitcoin makes a further correction I don't think that it can hold. I would expect at least a 30-40% drop in bitcoin which would translate to a correction of about 50-60% in EGLD.

I think two scenarios to be most likely: the blue one that sees prices stabilize at around 70$ and a yellow one that sees prices drop to about 40$. The second one I think is more likely as I think bitcoin will still have a bigger correction. It would therefore seem unlikely that support would hold at 70$; also, I think that a longer sideways movement will then occur which would favor the yellow scenario. In this, prices would drop to about 40$ (~60% correction), then recover to about 80$ only to again stabilize at around 50$.

However, both scenarios would see prices rise again in the next months. So if you are in it for the long run and see potential in this project, there is a good chance you will see a good return in a year or so!

 

As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!

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