Elrond gears up for a bull run in the coming weeks

Like many other cryptocurrencies in the market, Elrond has reported steady gains at the start of the week. The coin is indeed gearing up for a massive bull run after it managed to break out of a two-month resistance trend. But how far can the coin go, and will the uptrend really last? Here are some pointers:

• EGLD has managed to convert $56.3 from resistance to support

• Coin has struggled to surpass this price for the best part of 3 months

• The breakout presents a real possibility of a good uptrend for EGLD

Data Source: TradingView

How far can EGLD go?

At the moment, EGLD is setting the stage for a race to around $75 or so. This would represent an increase of 25% from the current price. Crossing $56.83 is a major achievement for the coin. The price is sandwiched between the longer-term resistance and the 20-day EMA of the EGLD.

At press time, the coin was selling for slightly above $60. This means that the EGLD has crossed a long-term resistance trend line, beating its 20-day EMA. These are very valid bullish signals that can give some hope to any investor.

However, there are still some limitations to the overall upside. For now, there seems to be a slight growth potential of 25%, but it’s really hard to say how far the coin can sustain these gains. After all, the crypto market is recovering a bit after last week’s selloff.

How to trade this setup

EGLD of course provides a good bullish setup. But only a short-lived drama makes sense. So, give it a day or two and see if the price consolidates above $56.4.

After that, buy at or around $75 and exit. For long term buyers, this is still a good time to buy due to the huge drop we have seen in the last 6 months.