- Elrond firmly holds to the ascending channel's middle boundary support.
- The MACD shows that the trend is generally upward, while implied technical breakout could hit $240.
- Elrond must break the crucial barrier at $194 to avert substantial overhead pressure.
Elrond is one of the crypto assets that have sustained the uptrend since the correction experienced toward the end of March. The altcoin has been trading within the confines of an ascending parallel channel, as observed on the four-hour chart. EGLD may drop from the prevailing market value and perhaps the anchor at the channel's middle boundary before resuming the uptrend to $240.
Elrond Short-term Technical Levels Intact
The Moving Average Convergence Divergence (MACD) hints at the uptrend continuing. This indicator follows an asset's trend while measuring its momentum. Traders use the MACD to identify the general trend in the market. However, the indicator does not show overbought or oversold conditions.
It is worth noting that the MACD also reveals positions to buy the dip and sell the top. When the MACD line (blue) crosses above the signal line, it implies that it is time to increase the asset's stake. On the other hand, striking under the signal line outlines that investors should consider selling.
EGLD/USD four hour chart
If the ascending parallel channel's upper boundary remains unshaken, Elrond may dive, testing the middle support. Here, buyers will have ample time to plan the next attack mission on the resistance. Breaking above the channel could significantly elevate EGLD toward a new record high of $240.
The same four-hour chart highlights a bullish impulse from the SuperTrend indicator. This indicator identifies positions where traders can either short or long as an asset. For example, the SuperTrend turned green recently, inferring that the uptrend is intact and that Elrond was still in a buy zone.
EGLD/USD four-hour chart
On the flip side, Elrond faces intense seller congestion at $194. Failure to claim the ground above this level would see overhead pressure rise considerably. On the downside, failure to secure support at the middle boundary of the channel could trigger massive losses toward the primary support provided by the 50 Simple Moving Average (SMA) on the four-hour chart.