The Elrond price is taking part in the ongoing crypto sell-off. EGLD is trading at $150, which is 40% below the year-to-date high of $245. According to CoinMarketCap, its market cap has crashed to more than $2.57 billion and its ranking fallen to 46. At its peak, Elrond was among the 25-biggest digital currencies.
What happened: Elrond is a fast-growing blockchain project that has been receiving substantial attention in the past few months. The network is similar to Ethereum in that it helps developers build decentralized applications. It uses a proof-of-stake consensus, adaptive sharding, and Elrond virtual machine, which makes it fast and relatively cheaper.
After soaring to an all-time high of $245 last week, the Elrond price has retreated. It has dropped by more than 40%. This performance is mostly because of the overall sell-off in the sector. As we have seen before, cryptocurrencies tend to move in sync. They also tend to take a cue from Bitcoin. When BTC price falls, others fall deeper because they are mostly owned by retail traders. Indeed, BTC has shed more than $14,000 from Wednesday last week. So, what next for EGLD price?
The chart below shows that the Elrond price has formed a wide ascending channel that is shown in red. The currency’s price has now tested the lower side of this channel and moved below the short and longer-term moving averages. It has also tested the 50% Fibonacci retracement level.
Therefore, in my view, there is a possibility that we could see a major recovery rally in the near term. For this to happen, the price needs to remain above the lower line of the ascending channel that is shown below. However, another volume-supported dip could push the price to the 61.8% retracement level at $97.
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