EGLD is the native token of the scalable blockchain, Elrond Network. The alternative asset overcame a declining wedge amidst upsides on August 20.
Meanwhile, its positive correlation with BTC saw EGLD resorting to declines as the overall marketplace endured a slump since this month started.
EGLD has seen a double-digit fall since August started (Coinmarketcap data). The drop came after a remarkable July surge that saw the token gaining 16%. While writing these lines, the alternative token changed hands at $52.51.
Breakouts from a plunging wedge are usually a price growth precursor. However, is that enough for market players to fill their bags with EGLD?
Be Patient
EGLD’s daily chart indicators tracking trading volume seem to negate the hopes for underway bullish reversals. While writing this blog, the token’s RSI (Relative Strength Index) swayed below the neutral-50 territory at 39. Also, the MFI (Money Flow Index) maintained downtrends, reading 35.
CMF (Chaikin Money Flow)’s dynamic line stayed beneath central (0.0), standing at -0.09 during this publication. That indicated a substantial pressure decline on Elrond’s price. That happens when an asset sees significant distribution.
The MACD’s position also confirmed such a narrative, as it exhibited red histograms during this publication. The Moving Average Convergence Divergence crisscrossed with the trend-line in downsides since August 15. That shows EGLD’S selling momentum increased within the last couple of days.
On-Chain Analysis
Elrond hasn’t been attractive on the social front since the month started. Its social dominance has declined by 86% since climbing to the 0.144% on August 9. While publishing this post, EGLD’s social dominance hovered at 0.019% (Santiment data).
Moreover, Elrond’s social volume recorded an 85% slump since the August 8 peak, standing at 12 during this publication. The blockchain noted 55.29 million transactions within the past week. That represented a 5% change from the prior week’s 54.73 million.
The past week saw 13.35M tokens staked on the Elrond Network. Meanwhile, the figure stood at 13.33M the week before. Also, the ecosystems DEX (decentralized exchange) – Maiar Exchange – noted a 13% decline in TVL (total value locked) over the previous week.
Developmental activity has maintained downward spirals for months, and the ecosystem lacked significant updates within the past few months.
