Like many other cryptocurrencies, Elrond (EGLD) has shown steady gains at the start of the week. The token looks poised for a potential bull run after breaking above a two-month resistance trendline. But how far might EGLD climb, and can the uptrend hold? Below are the key points and a practical trading approach.
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EGLD converted $56.30 from resistance into support
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The token had struggled to clear this level for nearly three months
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The breakout increases the likelihood of a meaningful short-term uptrend
Data Source: TradingView
How far can EGLD go?
Currently, EGLD appears positioned to target roughly $75, which would represent an approximate 25% gain from recent levels. Surpassing $56.83 is an important technical development. The price is now navigating between a longer-term resistance zone and the token’s 20-day exponential moving average (EMA).
At the time of writing, EGLD was trading slightly above $60, indicating it has cleared a long-term resistance trendline while remaining above the short-term 20-day EMA. Those are constructive bullish signals that may encourage investors.
That said, upside remains limited by market conditions. A near-term 25% rise seems plausible, but it is difficult to predict how long such gains can be sustained. The broader crypto market is only beginning to recover following last week’s pullback, and volatility could quickly reverse momentum.
How to trade this setup
EGLD presents a reasonable bullish setup, but it is best approached as a short-term trade. Wait one to two days to confirm consolidation above the new support level around $56.40 before entering. If price action holds, consider taking profits near $75.
For longer-term buyers, the recent decline over the past six months has created buying opportunities. Even so, manage risk with position sizing and stop-loss levels, and watch macro and sector-wide developments that could affect momentum.
In summary, the breakout above the two-month resistance offers a clear short-term trade idea with a defined target, but traders should remain cautious and use risk controls, as broader market recovery is still fragile.