The price of Elrond's EGLD token has seen a slight 0.55% dip over the past hour, declining from $26.18 to $26.04 as of August 30, 2023. With a current market capitalization of $630.36 million, EGLD remains one of the top 50 cryptocurrencies by market cap. In this report, we'll analyze the latest EGLD price action and key statistics to uncover insights for traders and investors.
Summarizing the data, EGLD has declined 0.55% in the past hour, 0.37% in the past 24 hours, 0.08% in the past week, and significantly 20.18% in the past month. Over the past 6 months, EGLD has seen a substantial 45.84% decline amidst the broader crypto bear market. Shorter-term traders will be monitoring the hourly and daily charts for signs of momentum shifts, while long-term holders will be more focused on the monthly timeframe.
Despite the recent downtrend, EGLD maintains strong fundamental metrics, including over 15 million in 24 hour trading volume, ranking it among the most actively traded altcoins. As a smart contract platform focused on scalability, transaction speed, and low fees, Elrond presents a long-term value proposition independent of short-term price volatility.
Analyzing the hourly EGLD/USD price chart, initial support has emerged around $25.50, matching the .618 Fibonacci retracement level from the July highs to August lows. If this support level is breached, the next key downside target comes in at the psychological $25 level. To the upside, resistance is seen at $26.50, yesterday's highs, and then at the falling 50-day moving average around $27.
On the daily and weekly timeframes, EGLD remains locked in a strong downtrend below its key moving averages. The bulls will need to reclaim the $30 level for an initial positive momentum shift. However, over the past week, downside momentum has slowed, with EGLD consolidating within a narrow range between $25.50 and $27.50.
Zooming out to the monthly chart, the breakdown from the key $45 support level gives a long-term bearish outlook, with the 200-month moving average potentially acting as resistance around $35. However, the monthly RSI is reaching oversold levels last seen during the capitulation lows in 2018, indicating EGLD may be due for a relief bounce if bottom signals appear.
Will Elrond Revisit June Lows Near $20?
With EGLD seeing significant weakness over the past month and multi-month consolidation below key moving averages, traders are wondering whether further downside towards the June lows around $20 is likely.
On one hand, on-chain data shows investors have been distributing EGLD over the past month, with coin dormancy increasing and active addresses decreasing. This rising selling pressure indicates the potential for a retest of the $20 level where EGLD found support in June.
However, network growth metrics remain strong, with total value locked in Elrond DeFi protocols remaining stable over $50 million. Further, Elrond’s fundamental narrative around scalability and low transaction costs positions it well for adoption if crypto markets stabilize. These factors suggest long-term holders may continue accumulating around current levels.
Technically, the $25.50-$27 zone must hold as support. Otherwise, a drop below $25 would open the door for a decline back towards the major support zone around $20. However, oversold hourly RSI readings indicate traders may buy the current dip. Overall, nimble traders can watch for a bullish RSI divergence on the hourly chart for signs of a short-term trend reversal.
Will 2023 Finally Bring an EGLD Price Breakout?
Despite lingering macroeconomic uncertainty, could 2023 finally be the year Elrond breaks out above its 2022 highs and enters a new bullish cycle?
On the optimistic side, Elrond continues to aggressively expand its ecosystem and onboard new users. Upcoming launches of stablecoins, NFT platforms, DeFi services and tokenized securities provide catalysts for increasing EGLD utility and demand. And EGLD staking rewards give investors an incentive to hold for the long-term.
However, broader risk asset sentiment remains fragile. Lingering high inflation, rising interest rates and recession fears may continue to plague risky assets like cryptocurrencies. For EGLD to break its downtrend, bitcoin likely needs to reclaim $25,000 for the bullish baton to be passed down to altcoins. Even in an ideal scenario, EGLD upside in 2023 may be limited to retesting 2022 highs around $500.
In conclusion, while short-term EGLD price action remains bearish amidst broader macro volatility, Elrond retains promising long-term fundamentals. The ongoing ecosystem expansion and focus on usability places EGLD in a strong position to capitalize on any resurgence in crypto adoption. Long-term investors would do well to keep accumulating during periods of extreme fear like the current market.