Eugene ChumFri, Sep 10, 2021 10:35 PM
Orbuculum: Elrond Price Analysis & Prediction for Q4 2021
In this Elrond price prediction article, we are going to study the project and conduct a fundamental and technical analysis of its price to see a price target EGLD could reach towards the end of 2021.
Elrond is a proof-of-stake blockchain with a Web Assembly (WASM) virtual machine, the sharding technology, and support for multiple programming languages on board. The project that was founded in 2017 in Malta and is presently based in Romania bills itself as an ecosystem for the new Internet economy, which combines fintech, DeFi, and IoT.
Elrond looks promising due to its technological base and the proactive vision of its team. Those of you planning on making digital assets part of your investment plan might want to look at Elrond as a potential asset in your portfolio, and we are going to help you gain more insight into its mid-term price development. To analyse the price, we are going to use the Elrond price chart provided by Bitfinex.
What news has had an influence on Elrond price?
Elrond was created in the midst of the DeFi rush of autumn 2020. The Elrond was really lifted by the wave of bullish impetus in January – February 2021, with the EGLD/USD train pair surging to 217 on 9 February.
The sharp rise of the EGLD coin also took place after Elrond had announced the launch of its Maiar wallet on 30 January that was promoted as an alternative to PayPal, Google Pay, and Revolut. The wallet allows you to send Elrond’s native EGLD cryptocurrency at a negligible cost and buy BTC, BNB, and ETH through partner exchanges.
The company’s CEO Beniamin Mincu said in an interview that the company’s plan was to get 1 million users in one month after the launch of the app, and the long-term plan was to get 1 billion users. Clearly, the ambitious rhetoric and the Maiar launch itself played a big role in the coin’s speedy rise.
EGLD/USD in the run-up to its February 2021 high, daily-timeframe chart
Reasonably enough, a cooling correction came through after that, allowing the traders to lock in their hefty profits and set a level of support, which turned out to be at 101.35. But the follow-up price action proved that the project had the trust of its investors: the EGLD price basically consolidated in the region of $110 – $159 until the next wave of bullish price action that began on 26 March 2021.
Elrond/USD consolidating after the February high, daily-timeframe chart
Next, Elrond/USD followed the bullish course until 12 April, when it found its new all-time high of 245. Subsequently to the new price peak, the Elrond price turned southbound through the May correction that ripped through the entirety of the cryptocurrency market.
One bit of news that contained a grain of positivity for Elrond during the bearish wave in the EGLD, was Audi-backed Holorond planning to integrate Elrond in its technology stack for the purpose of using non-fungible tokens (NFTs) for personalised in-car experience while allowing content creators to earn money off the purchases of the tokens.
The news came in the middle of the downtrend on 21 May and did not have any noticeable effect on the market, but the fact of this interest from another company could indicate real value behind the Elrond technological base that other businesses are willing to identify.
EGLD price going through corrective slide and bullish resurgence
Coming to the end of the bearish price action in the EGLD/USD trading pair, we can mark off the lowest point of the downtrend at $54.034 that was reached on 22nd July. It will be fair to say that the EGLD price found support mainly through the consolidation in Bitcoin that started to happen at the time rather than some other technical or fundamental factors. And with the end of the consolidation and the start of a new bullish wave in Bitcoin, Elrond was quick to follow suit.
Bullish wave from 21 July, daily-timeframe chart
On the chart above, you can see the Elrond price accurately following a parallel price channel starting from 21 July 2021. The several breakout attempts outside the channel have been successfully checked by the traders, and the 20-day simple moving average has been offering good support to the pair since the start of this currently ongoing bullish wave as of writing time.
Given that Elrond/USD was up 8.33%, despite BTC/USD being down 1.18% as of writing time in the late hours on 8 September, this bullish price action is indicative of some serious backing behind Elrond and trust in its strategy and plan that even the negative Bitcoin price dynamics cannot overturn. By the look of the price action in the Elrond/USD trading pair, it looks like Elrond’s technological edge is positively weighing on its market performance.
On 9 September, this discrepancy between the Bitcoin and Elrond became even more drastic: at 09:26 UTC the EGLD/USD price was up 20.29%; at 09:27 UTC, the BTC/USD price was up 0.43%. During that, the Elrond price eventually broke through the upper boundary of the parallel price channel on the daily timeframe, with a confirmation for the exit required to take place at the end of the trading session.
This is also indicative of ever reducing Bitcoin influence on a broad range of digital assets, with the ones with the best technology stack getting the best chance to excel. It might be a sign that the participants of the cryptocurrency market are starting to value the technological contribution of projects to the developing NFT and DeFi ecosystems more since the demand for better technology is becoming all the more apparent.
EGLD price prediction for Q4 2021
With the above analysis in mind, we assume that there is more bullish bias in the mid-term future for the Elrond coin price. Therefore, we believe that mid-term long orders for Elrond/USD are going to be more profitable towards the end of 2021 than the short ones.
As for particular entry and exit points, we see pivot 0.5 Fibonacci retracement level at 149.5 as a viable entry point for a long order, should the EGLD price break below the 20-day simple moving average. And the 50-day simple moving average, which is approaching the 0.5 Fibonacci retracement level, will also be a good indicator of a possible entry point for a buy order.
Looking at the areas you would want to lock your profits in at, the current ATH is an obvious one. However, those historical highs are not always of big significance especially when it comes to a solidly growing cryptocurrency market. Therefore, we would suggest looking at the 1.618 Fibonacci retracement level at 363 as an exit point for a buy Elrond/USD order and move the stop-loss order into the profit zone if 245 is reached for risk-management reasons.