Elrond rises 20% in 24 hours, after tripling in December – can the rise continue?
Elrond is quietly becoming one of the best-performing altcoins on the current bullish market.
Elrond rises 20% in 24 hours after tripling in December – the bullishness may continue?PRICE ANALYSIS
With Bitcoin (BTC) largely in the spotlight, after reaching a new historical record of almost US$24,000, other projects are also beginning to ride the BTC wave. One of the latest highlights is Elrond (EGLD), which has risen 20% in the last 24 hours and is approaching its highest point.
The current highs above $27 are an increase of over 200% in December and over 1,500% year-to-date, marking an extremely optimistic year for this project.
Elrond becomes the ninth cryptomoedas project on the eToroX list
Elrond’s recent execution is not only based on technical data, as the self-proclaimed „internet-sized blockchain“ has been listed on eToroX as the ninth cryptomeda. Only large currencies are listed on this exchange, but Elrond became the first exception.
Elrond originally started as an initial Binance Launchpad exchange offer, which took place in July 2019. Since then, the project has undergone some significant changes. One of these changes was the mainnet exchange, as the ERD token became EGLD in the summer. This change occurred during the mainnet launch.
In addition, a new decentralised financial application using the Elrond blockchain is due to be launched next year. The application is called Maiar, a non-custodial digital wallet and global payments application for exchanging and storing money.
EGLD approaches new historical maximum resistance
Daily EGLD / USD chart. Source: TradingView
Elrond’s daily chart against the USD has shown a significant recovery since its recent low of $6 to $27. The price is currently hovering around the historic high and will likely break it.
However, traders should be aware that the vertical price action is likely to descend for some support tests before a new wave of momentum can begin.
These support zones are clearly defined on the chart and should be observed by traders looking for potential entry opportunities.
In this chart, support zones are found in US$12.50 to US$13.50, US$16 to US$17 and US$19.50 to US$20.50. The main question is still the depth of the correction and at what level it will begin.
Once Elrond breaks the historical record, there are likely to be more advantages to this project. Meanwhile, the Fibonacci extension tool can help define possible higher levels for the next boost waves.
Using the Fibonacci extension tool, zones can be found at US$40 to US$42 and US$60 to US$65, which would put this token at the top of the 2020 best performance list.
BTC slowly waking up next to the US dollar
Daily EGLD/BTC chart. Source: TradingView
The Elrond BTC pair is showing a clear background construction forming in recent months. Elrond’s price has fallen slowly, creating a huge upward divergence, which has marked the bottom.
Since then, a small, higher minimum has been reached, starting the break-up upwards. This breakout took the race to 0.001300 sats, which is currently the temporary top. However, this breakout has led to a new higher maximum and after each higher high, the market will seek a new higher minimum.
This higher low will confirm the ongoing uptrend, and traders should watch out for support zones around the 0.000750 sats or 0.000850 sats areas.
If they hold and Elrond can break the 0.001300 sats barrier, another step of up to 0.002500 sats will become very likely.
Overall, a digital token like Elrond is showing the opportunities that rising markets can bring. At the moment, the focus is mainly on Bitcoin. However, once the price of Bitcoin begins to stabilise, the altcoins usually begin to recover – and often outperform the BTC in the short term. In this light, Elrond looks set to become one of the best-performing cryptomites by the close of 2020.