Elrond looks primed to rally after slicing through crucial resistance. Further buying pressure could push EGLD towards a new all-time high.
Elrond Primed for Higher Highs
Elrond is back in price discovery mode after breaching its previous all-time high at nearly $303.
The 35th-ranked cryptocurrency by market cap endured a lengthy consolidation period that began on Sep. 8. As EGLD made a series of higher lows, the $303 resistance zone rejected it from advancing further. Such price action led to the formation of an ascending triangle on Elrond’s 12-hour chart.
A recent spike in buying pressure pushed EGLD up by nearly 20%, allowing it to slice through the overhead resistance and make a new all-time high of $325. The bullish impulse also helped confirm a bullish breakout from the consolidation pattern. Now, Elrond could advance another 35% toward $440.
The optimistic outlook is determined by measuring the distance between the two highest points of the triangle and adding it to the breakout point.
It is worth noting that Elrond needs to remain trading above the $303 to $296 price range for the ascending triangle to remain as the governing pattern behind the asset. Failing to hold above this crucial demand barrier could lead to significant losses.
The Fibonacci retracement indicator, measured from Elrond’s previous all-time high of nearly $303 on Sep. 14 to its low of $121 on Sep. 7, provides a sign of where prices may be headed next.
A breach of the underlying support could lead to a correction toward $264. A spike in selling pressure around this price level could potentially develop into a more pessimistic outlook as the next important support area sits at $212.