Elrond (EGLD) Moves Towards $200 As Pullback Continues

EGLD gained strong downside momentum amid broad crypto-market sell-off and is down by as much as 16% in 24 hours.

Elrond Suffers A Pullback Despite Growing Popularity Of NFTs

Elrond, which has just provided an update on its NFT ecosystem, has been trending lower since late November, when it managed to get above the $540 level.

In the update, Elrond stated that more than 223,000 NFTs have been minted on the Elrond Network, and more than 22,000 accounts owned at least one NFT.

Such growth levels have previously served as a material upside catalyst for EGLD and pushed it to all-time highs in November, but it was not sufficient enough to prevent a pullback.

The key problem for Elrond and other promising projects right now is the general outflow of funds from crypto markets. The total crypto market cap declined from $3 trillion to $2 trillion in just two months as investors and traders rushed out of riskier assets in anticipation of higher interest rates in 2022.

EGLD cannot sustain the pressure in an environment when the world’s leading cryptocurrency, Bitcoin, is losing more than 35% of its value in just two months.

The Technical Picture Remains Bearish

EGLD managed to settle below the support level near $230 and is trying to get below the $200 level. RSI remains in the moderate territory, so there is plenty of room to gain additional downside momentum in case the crypto market sell-off continues.

In case EGLD declines below $200, it will head towards the support at $180. A move below this level will open the way to the test of the next significant support level near $165.

On the upside, EGLD needs to get back above the $230 level to have a chance to develop sustainable upside momentum. A move above $230 will push EGLD towards the 20 EMA near $245. If EGLD manages to settle back above the 20 EMA, it will head towards the next resistance level at the 50 EMA near $270.

Taking a look at H1 chart, we can see that EGLD began to rebound when RSI dipped into the extremely oversold territory. However, RSI has already moved back into the moderate territory, which means that EGLD may easily gain additional downside momentum in the near term in case the right catalysts emerge.