The Elrond price recovery has waned as the rest of the cryptocurrencies industry wait for the important Fed interest rate decision. eGLD is trading at $175, which is 7.45% below its intraday high of $190 and 51% above last week’s low of $116. It has a market capitalization of more than $3.15 billion.
Fed rate decision ahead: The Elrond price has declined slightly as the overall crypto universe wait for the Fed decision that will come out in the American session today. This will be an important event because it will signal whether the bank will leave its easy-money policies intact or whether it will start tightening.
In my view, while the US economy has rebounded, the Fed will likely sound cautious and talk about the uneven nature of the recovery. It will also maintain that it will not tapering its asset purchases any time soon. Furthermore, Jerome Powell still remembers what happened in 2018 December when stocks crashed after he made a hawkish statement. Therefore, in case of a dovish statement, Elrond price and that of other cryptocurrencies will keep rising. The vice versa is also true.
The four-hour chart shows that the strong eGLD price recovery has found some strong resistance at the 50% Fibonacci retracement level. The currency has also formed a bullish pennant pattern that is shown in black while the 25-day and 50-day moving average are about to make a bullish crossover. Therefore, in case of a dovish Fed, we cannot rule out a 12% jump to $195, which is slightly above the 38.2% Fibonacci retracement levels. If the Fed comes out swinging, the Elrond price will likely have a major decline to $165, which is the 61.8% retracement level.
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