With Bitcoin (BTC) largely in the spotlight after hitting a new all-time high of nearly $24,000, other projects are starting to ride BTC's coattails as well. One of the latest standouts is Elrond (EGLD), which is up 20% over the past 24 hours and nearing its all-time high.
The current highs above $27 is an increase of over 200% in December and more than 1,500% year-to-date, marking an extremely bullish year for this project.
Elrond becomes ninth crypto project listed on eToroX
Elrond’s recent run isn’t based on technicals only, as the self-pronounced internet-scale blockchain was listed on eToroX as the ninth cryptocurrency. Only large-cap coins are listed on this exchange, but Elrond has become the first exception.
Elrond originally started as an initial exchange offering from the Binance Launchpad, which took place in July 2019. Since then, the project has seen some significant changes. One of those changes was the mainnet swap, as the ERD token became EGLD in the summer. This swap took place during the launch of the mainnet.
Additionally, a new decentralized finance app that uses the Elrond blockchain is expected to launch next year. The app is called Maiar, a noncustodial digital wallet and global payments app for exchanging and storing money.
EGLD nears new all-time high resistance
Elrond’s daily chart against the U.S. dollar has shown a significant rally since its recent low, surging from $6 to $27. The price is currently hovering around the all-time high and will likely break through it.
However, traders should be aware that vertical price action most likely comes down for some support tests before a new impulse wave can start.
Those support zones are clearly defined from the chart and should be watched by traders for potential entry opportunities.
On this chart, the support zones are found at $12.50 to $13.50, $16 to $17, and $19.50 to $20.50. The primary question is still how deep a will correction go and at what level the correction will start.
Once Elrond breaks the all-time high, more upside is likely for this project. Meanwhile, the Fibonacci extension tool can help define possible top levels for the next impulse waves.
Using the Fibonacci extension tool, zones can be found at $40 to $42 and $60 to $65, which would put this token high on the list of 2020's top performers.
BTC pair slowly waking up alongside the U.S. dollar
The BTC pair of Elrond is showing a clear bottoming construction forming in recent months. Elrond’s price slowly dropped, creating a massive bullish divergence, which marked the bottom.
Since then, a small higher low was achieved, initiating the breakout to the upside. This breakout led the run toward 0.001300 sats, which is currently the temporary top. However, this breakout led to a new higher high, and after every higher high, the market will look for a new higher low.
This higher low will confirm the ongoing uptrend, and traders should keep an eye out for support zones around the 0.000750 sats or 0.000850 sats areas.
If those hold and Elrond can break through the 0.001300 sats barrier, another leg up to 0.002500 sats becomes very likely.
Overall, a digital token like Elrond is showing the opportunities bull markets can bring. Right now, the focus is mainly on Bitcoin. However, once Bitcoin's price starts to stabilize, altcoins typically begin to catch up — and often outperform BTC in the short term. In this light, Elrond looks poised to become one of the top-performing cryptocurrencies to close out 2020.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.