EGLD Technical Analysis: Failed Bearish Breakout Teases Bull Run

The EGLD Technical Analysis displays a lack of bearish momentum upon triangle breakout, teasing a bullish opportunity for a trend reversal. The EGLD price action shows a declining trend leading to a descending triangle breakout with the $50 fallout. However, the lack of bullish follow-through highlights a bullish opportunity to rise above the $ 50 mark. So, should you consider taking an early bullish entry?

Key Points:

• The Elrond price action shows a bullish turnaround reclaiming the $50 mark.
• The higher price rejection in the daily candle warns of a rise in selling pressure.
• The intraday trading volume in Elrond is $48.60 million.

Source — TradingView

EGLD Technical Analysis

The EGLD price action displays the bearish breakout rally of the descending triangle pattern struggling to gain trend momentum. Hence, despite the fallout of the $50 support zone, the price trend shows a consolidation range with the bottom support at $45. Currently, the price action shows higher price rejection in the daily candle, reflecting a temporary spike in selling pressure. In addition, the increase in trading volume supports the higher price rejection candles increasing the possibility of a bearish turnaround. A high-wick rejection candle at the combined resistance indicates a higher possibility of price reversal. Thus, a bearish reversal from this barrier will continue the downward spiral and plunge the prices by 14.5% down to $41.7 support. On a contrary note, if the market sentiment recovered, the coin buyers may breach this down-sloping trendline. Doing so will trigger a bullish upswing.

Technical Indicators

Despite an ongoing consolidation, a bullish crossover between the MACD and signal line indicates the buyers are quite active at below the $48 mark. Moreover, a bullish divergence in the RSI slope suggests improving market sentiment. Therefore, the EGLD technical analysis shows a growing bullish inclination in the underlying sentiments. Resistance Levels — $50 and $62 Support Levels — $45 and $41

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