The Elrond price retreated in the overnight session as part of the overall sell-off of cryptocurrencies. EGLD dropped to $110, which was 11.7% below yesterday’s high. It has fallen by more than 55% from its all-time high of $245. It has a market cap of more than $1.9 billion.
What happened: Elrond is a blockchain project that is creating the infrastructure needed to supercharge the financial sector. The network is made of a high bandwidth, low latency, and globally transferable money that can be used by everyone. It also has the capability to tokenize everything and provide a new experience for everyone.
Like most altcoins, the Elrond price surged early this year as the altcoins season happened. This saw its price surge by more than 3,000% from the lowest level last year to the highest level this year. This was also in part because of the strong user adoption of the platform. By January this year, Elrond had more than 90,000 accounts and more than 115 businesses and startups.
However, in the past few weeks, like all cryptocurrencies, the Elrond price has struggled. It has fallen by more than 55% from its all-time high. The sell-off accelerated last week during the cryptocurrency meltdown.
The four-hour chart shows that the EGLD price bounced back in the past few days. This saw it rise above the 23.6% Fibonacci retracement level at $109. At its peak yesterday, the currency was up by more than 80% from its lowest level last week.
The currency seems to be forming an inverted head and shoulders pattern. It has also moved above the 25-day and 50-day weighted moving averages (WMA).
Therefore, EGLD may keep rising as bulls target the 50% retracement level at $156. Nonetheless, a drio below the important support at $90 will invalidate this prediction.
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