Elrond (EGLD) Trapped In A Possible Bullish Pattern, Eyes $350

Elrond (EGLD) is another cryptocurrency that witnessed a solid recovery from the strong bearish pressure it saw over the summer of this year. During the year’s first quarter, the coin started with a solid foot eyeing levels above $400, although later it was hit by a bearish wave that took it down to near levels below $100.

As the crypto meltdown seems to have stopped, the contraction in the current price action implies a bullish pattern that could get solved into a breakout towards the north from a mid-term perspective, with the resistance area of $330 as the first critical hurdle to overcome.

200 SMA As The Line In The Sand

On the downside, EGLD bears are capped by the 50-period simple moving average at the H4 chart near the $310 level, which could act as a dynamic support and where there is a high activity in the volume profile across the board.

The altcoin caught bids when it tested the 200-period simple moving average at the end of October, giving it enough momentum to skyrocket further and eventually leading to the ongoing pattern that it’s being formed as of press time.

What About The Pessimistic Scenario?

In case that bears take the reins of the price action in Elrond, the doors will open for more weakness that could point towards the 200 SMA around $270 in a first degree, considering it as a free fall in the midst of the current bull-run. That’s because of the overextended move that EGLD experienced over the last few days.

A pessimistic scenario also suggests a deepening of the decline towards $230 if the RSI indicator turns bearish at the current timeframe.

However, once EGLD breaks above the resistance area of $330, the price action could gather momentum and eventually rally towards the psychological level of $400, followed by the $430 zone.

Because of the recent overall gains from a broad perspective, Elrond has all the odds in favor of increasing buyer demand.