(For a more recent analysis: “Elrond (ERD) is up 5,100% in the last 4 Months”)
You have probably heard about Elrond already considering it is one of the best performing altcoins in 2020. Elrond is a blockchain capable of achieving high scalability with a lot of speed built specifically for internet-scale.
The Elrond Mainnet is set to launch in around 12 days before the end of July. While this event is definitely notable, it is obviously not big enough to cause a 3,300% price surge within a few months.
What exactly happened with Elrond?
After a massive spike on Binance when ERD started trading, the digital asset went into consolidation mode and slowly dropped from $0.007 towards $0.0015 in the next few months. On January 1, 2020, ERD was trading at around $0.0018 and kept dropping until the crypto crash of March 13 reaching an all-time low of $0.00055.
Things were clearly not looking good for ERD, however, after the market started recovering, Elrond not only recovered but absolutely blasted through all resistance levels hitting $0.003 on June 3, only 3 months later.
While this surge seemed already big enough, ERD simply continued climbing and reached $0.0065 on June 20, only two weeks later. Again, selling pressure was mounting and practically all indicators were showing ERD being overextended but that didn’t stop the bulls from hitting $0.0166 only a month later.
This is by far one of the most impressive altcoin runs this year, in fact, it is probably the best considering its trading volume and market capitalization.
Elrond went from a small market capitalization of $7.9 million to a peak of $219 million climbing above the top 50 coins.
What are the red flags?
Considering the magnitude of the bull rally, even a 50% drop would be ‘reasonable’. For now, the daily uptrend continues even though ERD is already down 22% since its peak.
The daily 12-EMA at $0.0128 is the closest most important support level. ERD has stayed above this support level for more than a month. A loss of the 12-EMA would be notable but far from the end of ERD’s run.
The next support would be $0.01 which is the 26-EMA and a psychological level but even a loss of this level would not necessarily be the end of the run. The daily RSI has already cooled off and we could easily see another leg up soon.
The fact that ERD’s trading volume has declined after a few bearish candlesticks, indicates that sellers aren’t that strong. The daily MACD is getting close to a bear cross, however, FOMO is simply too strong right now for it to matter.
The most important support level for ERD is definitely $0.0056, of course, a drop below this level would be quite a big red flag. It’s important to note that even at $0.005, ERD would be 580% higher than what it was in April 2020.
Bears are basically looking for increasing bearish volume while cracking both daily EMAs and optimally the $0.01 zone. For now, the DeFi craze continues and the Mainnet hasn’t even been launched yet. There is a chance that the launch creates a classic scenario of ‘buy the rumor, sell the news’ but it’s unlikely considering how many people want to buy ERD right now.
Shiba Inu to Reach 1$ soon? This New Upcoming Development Proves it Right
These Binance Altcoins Are Mooning Like Crazy!
Ethereum is the Most Likely Candidate to Take The Lead of the Next Bull Run
Big News: Ripple Price is about to TRIPLE? This News Confirms…
Bitcoin Price Hits $26,000 And Targets $30,000 By The End of 2020
Top 5 Cryptocurrencies With Potential in the Long Run
LINK Price Jumps to $11.5 After Strong Rebound
Can Shiba Inu Price Reach 10 Cents?
Ripple Price Prediction: XRP Could be Poised For Further Correction Down to $0.40
Civic Price Prediction: CVC explodes 600% after Coinbase listing
The Big Ripple Price Prediction for 2023 – How high can the XRP price go in 2023?
Bitcoin Price Prediction: BTC Aims For Recovery to $20,000
PolkaDOT Price Could Be Headed to $7 Again
These Coins made people rich in 2020
Ripple Price Analysis: XRP Jumps 4% After PayPal Announcement
Shiba Inu Price Prediction: How High can SHIB Price reach by 2030?
Bitcoin Price Decoupling From The Stock Market
Ethereum Price Hits $392 And Confirms Monthly Uptrend Not Seen Since 2017!
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: ETH hits new all-time high, signaling alt season is near
You might also like
More from Altcoin
MATIC Price goes back to 1$: Time to BUY MATIC before Prices EXPLODE?
Is it smart to buy MATIC at current prices? Will MATIC go down further or retrace higher? Let's analyze in …
Litecoin investment opportunities: Should You Invest Now?
Can Litecoin become increasingly important in the future. Let's take a look at the Litecoin investment opportunities.
Ethereum Price Forecast 2023: 5 Reasons ETH Could Hit $3000 in 2023
In this Ethereum Price Forecast 2023 article, we'll explore five potential scenarios for Ethereum's price performance in 2023.