Elrond (EGLD) has weakened more than 40% since November 03, falling from $63.73 to a low of $40.92. The current price of EGLD stands at $42.39, which is more than 80% off from its 2022 highs that were registered in February.
Today, Stanko from Crypto Lists will lend his expert eye to Elrond (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.
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- 1 Elrond brings improvements in blockchain speed, scale, cost, and user experience
- 2 Where we are today
- 3 Technical analysis for Elrond (EGLD)
- 4 Important support & resistance levels for Elrond (EGLD)
- 5 What speaks for the rise in the Elrond (EGLD) price
- 6 What indicates further downfall for Elrond (EGLD)
- 7 What do analysts and experts say
Elrond brings improvements in blockchain speed, scale, cost, and user experience
Elrond is a highly scalable, fast, and secure blockchain platform for distributed apps, enterprise use cases, and the new internet economy. This blockchain platform is built by a team of experienced entrepreneurs, engineers, and researchers with significant blockchain backgrounds who believe that blockchain integration should happen only if it creates real value.
Elrond is designed to compete against major blockchains, such as Ethereum and Zilliqa, and according to its official website, it brings significant improvements in blockchain speed, scale, cost, and user experience.
Elrond employs two unique features, adaptive state sharding and proof-of-stake, which allow it to process roughly 12,500 transactions per second. Sharding works by splitting the network into pieces, or shards, and once the transactions are processed, the shards broadcast them to the metachain (Elrond’s central blockchain), where they will be settled.
Secure Proof of Stake (SPoS) governance mechanism is used by computers running the Elrond software to secure the network, validate transactions, and distribute newly minted EGLD coins. Secure Proof of Stake eliminates PoW computational waste, and because of this, it is also more energy efficient than some other governance mechanisms.
Elrond is a project that has big potential, and it is important to say that many important projects have already partnered with Elrond. The most popular ones include Binance, Bitfinex, eToro, Voyager, Kraken, OKX, Block Bank, Equalizer, Nash, Ultra, Cartesi, Holo Chain, and Matic..In August 2022, Elrond announced a partnership with UK-based fintech company Revolut which offers its services to over 20 million consumers in 36 countries.
“The most innovative and disruptive startups in the fintech field gravitate towards crypto, bringing along unique talent pools and fully engaged communities. When you add to this a vision that transcends its own product and industry, you get a game changer. Elrond is such a project. That’s why we are excited to be able to offer EGLD to Revolut’s customers and help them accomplish their vision of an inclusive global financial system.”
– Beniamin Mincu, CEO, Elrond Network
Where we are today
Elrond’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 gain the ability to vote on network upgrades. In 2021 , 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.
The current price of EGLD stands at $42.39, which is more than 80% off from its 2022 highs, and the risk of further decline for EGLD is not over.
The federal funds rate is now in a range of 4.25% to 4.5% (the highest level since 2007), and there’s a general expectation of a contraction in the economy in the next several months, and it’s going to have an impact on corporate earnings. Investors continue to stay away from riskier assets, and in the days ahead, we can see EGLD at even lower price levels.
Technical analysis for Elrond (EGLD)
Elrond (EGLD) has weakened from $63.73 to $40.92 since November 03, 2022, and the current price stands at $42.39. Elrond (EGLD) might have a hard time holding above the $40 level in the upcoming days, and a break below this level would indicate that EGLD could probably test the price level at $35.
On the chart below, we can see that EGLD has been moving in the range from $40-$60 for a while, and as long the price of EGLD is below $60, it remains in the SELL-ZONE.
Important support & resistance levels for Elrond (EGLD)
On this chart (the period from April 2022), I marked important support and resistance levels that can help traders to understand where the price could move. The risk of further sell-off for EGLD is not over, but if the price advances above $50, the next target could be important resistance that stands at $60. The current support level stands at $40, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $35. If the price drops below $30, which represents very strong support, the next target could be located around $25 or even below.
What speaks for the rise in the Elrond (EGLD) price
The last several weeks have been extremely tough for the cryptocurrency market, and cryptocurrencies have been suffering as the FTX crypto giant went bankrupt. The upside potential for EGLD remains limited for now; still, if the price advances above $50, the next target could be important resistance that stands at $60.
On Tuesday there was a smaller-than-expected rise in U.S. consumer prices, but the U.S. central bank signaled yesterday (Wednesday) that it would keep lifting interest rates in 2023 in order to bring down inflation.
What indicates further downfall for Elrond (EGLD)
Elrond (EGLD) has weakened more than 40% since November 03, and despite this, market participants should be ready for another potential downward move. The U.S. Federal Reserve hiked the benchmark interest rate by 50 basis points yesterday and signaled that it would keep lifting interest rates in 2023 in order to bring down inflation. The Fed now projects inflation, as measured by personal consumption expenditures, to rise to 5.6% this year, up from the previously estimated 5.4%. The FOMC said in a statement after its two-day meeting:
“The committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time.”
The price of EGLD is also correlated with the price of Bitcoin, and if the price of Bitcoin drops again below the $17000 price level, that would probably have a negative influence on the price of EGLD.
What do analysts and experts say
November was a rough month for the cryptocurrency market, and all major cryptocurrencies have been suffering due to the collapse of the FTX cryptocurrency exchange. The sentiment on the cryptocurrency market improved a little bit on Tuesday after a smaller-than-expected rise in U.S. consumer prices raised hopes that the Federal Reserve could soften its aggressive rate hike stance.
Following the current increase, the federal fund rate is now in the range of 4.25%-4.5%, the highest since 2007. The U.S. economy faces a recession risk that could dent crypto market sentiment even more, and there are obviously macroeconomic factors driving the wider crypto market at the moment. Head of Galaxy Digital fund and former Goldman Sachs fund manager Mike Novogratz said that cryptocurrencies would not make any significant jump until the Fed shifts its policy from hawkish and goes back to monetary easing.
Brian Quinlivan, Director of Marketing at Santiment, said that the world remains fragile; investors have lost interest in accumulating more coins, and traders aren’t trusting much of anything to rise any time soon. The consensus appears that the price of EGLD could drop even lower before reaching the bottom of the ongoing bear market.
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.