EGLD prices action shows a bullish turnaround from the psychological mark of $50 with a potential morning star pattern formation. Key technical points:
- The EGLD market price has increased by 4.45% over the past 24 hours.
- The price action warns of a long wick candle formation due to the rejection at the 50-day SMA.
- The 24-hour trading volume of Elrond is $53.59 Million, indicating a rise of 3.41%.
Past Performance of EGLD
EGLD price action shows a bullish reversal from the $41 mark resulting in a resistance trendline breakout to reach $64. However, the bears retake trend control with excessive selling pressure resulting in a drop to $50. The retracement rally struggles to crack under the psychological mark again as the buyers prepared for a morning star pattern after the Doji formation yesterday. A morning star forms following a downward trend, indicating the start of an upward climb. The pattern consists of three candles, the first being a highly bearish candle, the second a Doji or a small-bodied candle, and finally followed by a bullish candle.
EGLD Technical Analysis
The EGLD daily candles showcase lower price rejection with tail formation over the past two days teasing an incremental growth in buying pressure. Hence, traders can expect the price to sustain above $50 this week. The MACD and the signal lines struggle to keep a bullish trend as they approach the zero line, as the shrinking spread suggests a bearish crossover. Thus, the indicator reveals an underlying decline in the bullish sentiments. The RSI indicator displays a recovery in the buying pressure as the slope rises after dropping below the halfway line and the 14-day SMA. Therefore, the indicator adopts an optimistic view as the price action analysis compared to the MACD. Additionally, the bullish divergence in the RSI slope suggests a higher likelihood of a prolonged uptrend. In a nutshell, the EGLD technical analysis shows the indicators and price action taking a bullish side if we neglect the MACD indicator. However, a price action confirmation will help avoid traders from the risk of downfall.
If the buying pressure grows overnight, EGLD prices will successfully form a morning star pattern, leading to a price jump above $64. Traders can expect the breakout rally to surpass the 50-day SMA at $69 to reach $75. Resistance Levels: $64 and $69 Support Levels: $50 and $45