The Elrond price is calm ahead of the pivotal central bank decision but could experience wild price swings later today.
Elrond (EGLD) is no stranger to volatility. Following an explosive 140% rally, EGLD set a new all-time high in November but gave it all back following Bitcoin’s sudden flash down to $42k. Due to the $300 round-trip to $544 and back to the current $260, EGLD is roughly the same price as April. As a result, the token is consolidating above the former all-time high, which could prove pivotal this evening.
Today, the FOMC will wrap up its final meeting of 2021. And although the committee of US central bankers is expected to announce plans to accelerate the taper timeline, a more-aggressive stance could trigger deleveraging from risk assets. However, a cautious approach could provide a significant tailwind for the Elrond price.
The daily chart shows Elrond is between the 100 and 200-Day Moving Averages. The 100-DMA at $281.83 is the first resistance level, and successful clearance of the indicator could encourage an extension towards the early November highs around $338.
The most significant danger for ELGD is if the Fed deliver a bearish surprise later today. In that event, the 200-DMA at $193.43 is a must-hold support level. In my opinion, a daily close below the indicator would be damaging, potentially triggering a sustained sell-off.
However, it’s impossible to predict which way the fed are leaning without a crystal ball. On that basis, I am firmly on the sidelines until the announcement drops.
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This post was last modified on Dec 15, 2021, 03:03 GMT 03:03