EGLD Technical Analysis: Token Price Retests to Head Towards $400

Elrond (EGLD) is described as a platform for blockchain technology, including decentralized applications, enterprise use, and the new internet economy. Its greatest selling point, however, is its high scalability. This is because it is the first blockchain network to implement state, network, and transaction sharding. 

According to the economic paper, it aims to develop its ecosystem and to establish EGLD to be a store of value assets.

To accomplish this goal, the network runs with 2,169 validator nodes. It is divided into four shreds: three execution shreds that can execute 5,400 transactions per second each; and one coordination shard, called the «Metachain.» Elrond has an adaptive state-sharding architecture that completely shards the network, state, and transactions. 

When throughput demand is not met it can scale up by adding an additional layer. It has been tested in a public environment with 1,500 Nodes from 29 Countries, which was divided into 50 shards.

The project provides support to developers working on the platform in order to increase their adoption. Developers can also earn 30% as royalties from smart contract fees.

During its initial year, the company holds a supply of EGLD tokens for stakes on the network. Validator Nodes receive a 36% annual percentage rate.

Past Performance of EGLD

EGLD coin prices found huge demand near the $65 support level which started the bullish rally. The uptrend inaction results in more than 300% in the past 2 months. Last week, the EGLD cryptocurrency saw a growth of more than 50%. Thus, resulting in the bullish engulfing candle and a new all-time high of $302.

Source — Tradingview

EGLD Technical Analysis

EGLD coin price is trading at $267 at the time writing with a rise of 7.14% in the past 24 hours. The solid uptrend has found numerous demand spots on the support trendline. These frequent rises in demand have pushed the EGLD coin prices higher.

Source — Tradingview

The strong uptrend of the EGLD coin is pushed with a solid support trendline that has pushed the price higher 4 times marked in the chart. Furthermore, the recently made bullish engulfing candlestick rises above the resistance level of $250. The breakout of this level acted as a catalyst in the formation of the new all-time high of $302.  

As per the pivot points, the coin price may find resistance near $325 and $375.

And the support levels are at $225 and $200.

The exponential moving averages of 50, 100, and 200-days rise higher in the bullish formation. They may act as support levels in case of an unexpected downfall.

Currently, the RSI indicator is residing at 72% as it enters the overbought territory. 

Source — Tradingview

Furthermore, the EGLD coin price is moving above the bullish cloud of the Ichimoku indicator projecting an uptrend in motion. The uptrend grows stronger as the lagging span grows.

The baseline and conversion line both are rising higher indicating an uptrend in the short and mid-term. Furthermore, the coin price is above the Ichimoku bullish cloud adding points to the bullish rally.

The fallout below the trendline or Ichimoku indicator line will signal the end of the uptrend. When this happens, it will be a great shorting opportunity.

Day-Ahead and Tomorrow

EGLD token price grows in an uptrend by breaking various key resistance levels. The recent breakout of the $250 level serves as an excellent entry spot upon retest with minimum risk. Investors can also wait till the price retraces back to the support trendline for a safer opportunity.

   
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