Decreasing Volume Hints EGLD to Reverse from $75

The new descending trendline carrying the ongoing downfall plunged the (Elrond)EGLD price to a low of $076.1. Following, the altcoin shows a minor pullback, but the decreasing volume activity suggests weaknesses in the bullish moments. Can buyers undermine the multiple resistance waiting ahead?

Key points: 

• The EGLD price has gained 36% in the last five days
• The sellers would mount a strong defense at the $75 mark
• The intraday trading volume in Elrond coin is $77.7 Million indicating a 15% gain.

Source- Tradingview

During the first four months of 2022, the Elrond(EDGL) buyers aggressively defended the $125 support. Furthermore, responding to the ongoing consolidation, altcoin slumped to this bottom support with hopes of replenishing the buying momentum. 

However, the EGLD price couldn’t hold the $125 support amid the recent sell-off and plunged the coin below it on May 6th. As a result, the rising bearish momentum extended the downfall to a low of $75, registering a 37% fall. 

Following this, the EGLD price bounced back from this $75-78 support aligned with low volume support. With the rising price and decreased volume, the coin has a higher possibility of reverting from overhead resistance and continuing the prevailing trend. 

Furthermore, the EGLD price is approaching a confluence of multiple resistance such as the descending trendline, 0.236 FIB, and 20-day EMA. 

The expected reversal would sink the altcoin back to the $77 mark. 

Technical Indicator

The RSI-slope return from the overbought region showed steady growth towards the equilibrium. However, the altcoin will be bearish in nature until the indicator value sustains below the neutral line(50).

The 20-day EMA aligned with the resistance trendline strengthens the seller’s defense. Moreover, the price moving below the crucial EMAs(20, 50, 100, and 200) gives an overall bearish outlook. 

• Resistance levels: $105 and $125
• Support levels: $75 and $60

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

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