- Elrond price has been on a tear lately as it sliced through barriers to reach a new high of $302.99.
- EGLD is likely to retrace to $237.33 or $213.78 before restarting the exponential run-up.
- If the bears push below the $193.26, it will invalidate the bullish thesis.
Elrond price growth over the past week has been nothing but explosive. This rally allowed the bulls to venture into the discovery phase as they set up a new all-time high.
Due to the extended nature of the upswing, EGLD is likely to retrace before heading on another impulsive move higher.
Elrond price gathers steam for the next leg
Elrond price rose 132% between September 7 and September 14 and created a new all-time high at $302.99. Doing so triggered the Momentum Reversal Indicator (MRI) to flash a warning signal in the form of yellow ‘down’ on the 1-day chart. This development indicates that if EGLD continues to go higher, a sell signal in the form of a red ‘one’ will be displayed.
This technical formation forecasts a one-to-four candlestick correction. Therefore, investors need to be prepared for a retracement to the support levels at $237.55 or $213.78.
This move will help the bulls recuperate their strength and make a comeback. Assuming this occurs, market participants can expect Elrond price to restart the uptrend to retest the all-time high at $302.99.
A decisive daily close above this level will open the path for a 21% upswing to the 127.2% Fibonacci extension level at $371.29. In a highly bullish case, the buyers might propel the altcoin to the 141.4% Fibonacci extension level at $406.77.
EGLD/USDT 1-day chart
On the other hand, if Elrond price fails to hold above $213.78, it will indicate massive profit-taking in the market, and investors are not ready to bid yet. In such a case, EGLD could bounce off the next support floor at $193.26 to restart the uptrend.
However, if Elrond price produces a swing low below $193.26, it will invalidate the bullish thesis and trigger a consolidation or a continuation of the downtrend.
