Elrond (EGLD) has weakened more than 40% since April 27, 2023, falling from $52.44 to a low of $28.28. But where is the price of EGLD going next, and what can we expect from the rest of June 2023?
The current price of EGLD stands at $30.42, and potential investors should keep in mind that this crypto is highly volatile and remains a highly risky investment.
Today, Crypto Lists will discuss EGLD price estimates from a technical and fundamental analysis perspective.
Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
Go directly to
- 1 Elrond rebranded as MultiversX
- 2 From PoS to SPoS
- 3 The free flow of BTC & ETH to MultiversX
- 4 EGLD’s present position
- 5 Technical analysis for EGLD
- 6 Important support & resistance levels for EGLD
- 7 What speaks for the rise in the EGLD price
- 8 What indicates further downfall for EGLD
- 9 What do analysts and experts say?
Elrond rebranded as MultiversX
MultiversX (formerly Elrond) is a highly scalable, fast, and secure blockchain platform for distributed apps, enterprise use cases, and the new internet economy. It is important to say that in November 2022, Elrond rebranded as MultiversX to reflect its new direction toward metaverse development. As part of its new transformation, MultiversX has launched three new metaverse-based products: xFabric, xPortal, and xWorlds.
MultiversX was created to enable radically new applications, for users, businesses, society, and the new metaverse frontier, but it offers many features common to other cryptocurrency networks, including smart contracts, transaction settlement, and token issuance.
Many experts say that MultiversX is one of the most scalable blockchain architectures in the world that aims to solve major fundamental problems critical for global adoption.
From PoS to SPoS
Central to MultiversX is the Secure Proof of Stake (SPoS), a proof-of-stake (PoS) consensus mechanism that secures the network and validates transactions. MultiversX’s transaction processing mechanism is called ‘Adaptive State Sharding,’ where the system splits nodes into subsets to verify transactions. Once the system processes the transactions, the shards broadcast them to the metachain (MultiversX’s central blockchain) where they are settled.
According to its official website, transactions on MultiversX are remarkably inexpensive ( only $0.05/tx) and fully carbon negative. So each Money, Defi, NFT, and DAO transactions have been fully offset.
MultiversX is a project with big potential, and according to the latest news, support for the two most popular digital assets has been enabled on the MultiversX Bridge, allowing them to benefit from the MultiversX’s high-speed, low transaction fees and unique innovations.
The free flow of BTC & ETH to MultiversX
The extended interoperability means that Bitcoin and Ethereum can access from the same level of convenience as MultiversX’s cryptocurrency and enable DeFi protocols and other ecosystem products the possibility to integrate them and create new opportunities for users within the ecosystem. The team of MultiversX added:
“The free flow of BTC & ETH to MultiversX is an important step forward meant to significantly increase ecosystem liquidity, exposure and accessibility, as we expect them to be rapidly integrated into multiple protocols and stand as the prerequisite for many new creative opportunities. The upcoming months are for expansion on all fronts for MultiversX.”
From users & devs onboarding, protocol upgrades and new products, as outlined in the HypergrowthX battle-plan, to interoperability with new chains and assets enabled by the MultiversX Bridge and other work in progress integrations with major infrastructure players.”
MultiversX’s cryptocurrency, EGLD, plays a key role in maintaining its network and can be used for sending, rewarding network contributors, and running smart contracts.
The supply of EGLD is limited to 20 million coins, and by owning and staking EGLD, users can vote on network upgrades. In 2021 year, EGLD achieved impressive growth accompanied by several extremes: in February, April, and September. The all-time high was achieved in November, and it was $541.50.
EGLD’s present position
The current price of EGLD stands at $30.42, which is more than 40% off from its 2023 highs, and the risk of further decline for EGLD is not over. EGLD is highly volatile and remains a highly risky investment, but the wider dynamics of the cryptocurrency market also play an important role in determining the price of EGLD.
The U.S. Securities and Exchange Commission (SEC) pressure, together with recession fears and aggressive monetary policy from major central banks, will continue to have a major influence on the cryptocurrency market in the weeks ahead.
There are currently too much important things that could easily go wrong, and a recommendation is that investors should continue to take a defensive investment approach. Usually, during volatile events like crashes, there are a large number of investors who panic and sell off their coins, and according to many analysts, EGLD might have a hard time holding above the current price levels.
Technical analysis for EGLD
EGLD has weakened from $52.44 to $28.28 since April 27, 2023, and the current price stands at $30.42. EGLD might have a hard time holding above the $30 level in the upcoming days, and a break below this level would indicate that EGLD could probably test the price level at $28.
Important support & resistance levels for EGLD
The beginning of the 2023 year has been successful for EGLD, but the price of EGLD has remained under pressure since April 27, 2023, and the risk of further decline is still not over. On this chart (the period from October 2022), I marked important support and resistance levels that can help traders to understand where the price could move.
EGLD has made a minor recovery this Tuesday, and if the price advances again above the resistance that stands at $35, the next target could be $40. The current support level is $30, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $28. If the price drops below $25, which represents a very important support level, the next target could be located around $20.
What speaks for the rise in the EGLD price
The overall sentiment on the cryptocurrency market can play a crucial role in EGLD’s price trajectory. If investors regain confidence and the market recovers from recent setbacks, an upside potential could benefit EGLD and other major cryptocurrencies.
According to the rules of technical analysis, EGLD remains in a bear market, but if the price advances above the resistance that stands at $35, the next target could be resistance at $40.
What indicates further downfall for EGLD
There has been a significant drop off in the number of whale transactions, and when whales reduce their trading activity (transactions worth $100,000 and above), it usually indicates that they are losing confidence in the underlying coin’s short-term price prospects.
If the whales continue to reallocate funds to other investments, the price of EGLD could take an even bigger hit in the upcoming weeks. The price of EGLD is currently above $30 support, but a break below this level would indicate that EGLD could probably test the important support level that stands at $25.
The price of EGLD is correlated with the price of Bitcoin, and when the price of Bitcoin drops, that usually has a negative influence on the price of EGLD.
What do analysts and experts say?
The cryptocurrency market slightly advanced this Tuesday after the U.S. reported that headline inflation rose at the slowest pace since April 2021, spurring traders to increase their bets that the Federal Reserve will skip a rate hike at its Wednesday meeting.
The U.S. Labor Department’s consumer price index (CPI) reading showed that inflation rose only 0.1% in May compared with a 0.4% jump in April, with core inflation remaining unchanged at 0.4%. However, a team of analysts at Goldman Sachs said that a road to the Fed’s inflation target of 2% will be bumpy, and there’s a general expectation of a contraction in the economy which will impact corporate earnings and financial markets.
At the same time, the U.S. Securities and Exchange Commission (SEC) has taken an increasingly aggressive stance towards the crypto sector, and a recommendation is that investors should continue to take a defensive investment approach in the weeks ahead.
Wells Fargo analysts said that over the next 2-3 months, they expect to see a 10% correction on the U.S. stock market, and if this happens, it would certainly negatively influence the price of EGLD.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.