After being rejected at $102.87 on July 5, the price of Elrond is retracing.
After the pullback sweeps the swing lows of July 2 at $77.42, an upswing is anticipated to emerge.
The bullish thesis will be invalidated if the $68 support level is broken.
Between June 26 and July 2, the price of Elrond had an extraordinary rise, which was followed by a severe decline after piercing the high probability reversal zone. The pullback will continue until it reaches a level of support that is adequate.
After an 82 percent increase between June 26 and July 2, the price of Elrond has retraced around 23% in the last week. Due to the exponential growth in EGLD’s market value and the entry into a high likelihood reversal zone stretching from $96.91 to $108.83, the downswing was unavoidable.
Investors can expect the slump to extend another 8% when Elrond price cuts through the trading range’s midpoint at $88.50. The swing lows at $77.42 will be swept, creating liquidity and acting as a reversal point.
If the purchasers come to Elrond’s aid, a 15 percent increase to $88.50 is likely. Elrond price will settle between $91.91 and $93.63 if bullish momentum is strong enough to break through this barrier.
In a highly bullish scenario, the price of EGLD might hit the 62 percent Fibonacci retracement level at $96.91, which is the start of the high likelihood reversal zone.
4-hour chart of EGLD/USDT
While the reversal around $77.42 appears plausible, investors should keep in mind that a longer correction is possible. If buyers fail to push the price over $77.42 after a sweep, Elrond is expected to fall another 12% until it reaches the $68 support level.
If this level is breached, the bullish thesis will be invalidated, and EGLD might be pushed down to the swing low of $61.81 set on June 27./n
