Second consecutive week with $BTC prices in the range between $27k and $31.5k, which continues to generate a latent indecision in the market.
In the case of $ETH we did see a lower low two weeks ago, but for the time being it still holds the June 2021 support zone, so the macro situation is very similar.
This difference leaves us with a bearish movement in the ETH/BTC pair of -10% in 4 days and at the same time that continues to increase the Dominance of BTC, which has made a bullish continuation movement during this week and is approaching the 48-49% resistance as we can see in the following chart.
The rest of the market continues to leave traces of the distrust generated by the fall of $LUNA and $UST, with a week in the red for most of the market.
On this occasion I would like to review the situation of the $EGLD token of the Elrond network. One of the most affected during this week, losing -25% of its price in just 3 days.
For those of you who want to know more about the Elrond network, I leave you this link to the Space we did with @joseaznarp, ambassador of Elrond in Spain who explained in detail the potential of its ecosystem and told us some of the news they have planned for the future.https://www.linkedin.com/embeds/publishingEmbed.html?articleId=7675660011489639806
Regarding the technical situation of their $EGLD token, there are several factors that have caught my attention and that I would like to highlight in this analysis.
If we look at its long-term chart, we see that there is a downtrend since the end of 2021 that is still in force in the market and an uptrend that visually broke at the beginning of this month of May. If we look at this long-term uptrend, we see that its last confirmed fractal is located in the area of the June 2021 lows, a support area that is located between $54/$52. This support also marks what would be the breakout zone of the long-term uptrend.
On the other hand, we see that a small bullish divergence is being generated in the RSI indicator in this last low, although at the moment the RSI is still below the level of 30. so I believe that we can give a lower probability that this divergence implies a recovery movement.
Another aspect I would like to highlight is its increase in social volume. Since the price approached the $75 level, we have detected several punctual increases with a clear component of euphoria. These increases are occurring more strongly and in shorter time frames with the proximity of its price to the macro support zone.
If we enlarge the price chart to 1h candles, we can see how in the short term there is an increase in trading volume in the area of lows, as was the case a few weeks ago.
Despite this increase in volume, the downtrend remains in force and leaves us with its last confirmed fractal at $100-$105. While we do not see new highs that break this resistance in the short term, we can not raise any scenario of trend change, although this would begin to take shape in the event that the support of $54-$52 consolidates.
Finally, remember that none of our articles can be considered as investment advice, everyone must do their own analysis and develop their own trading strategy. From the Belobaba Crypto Fund team we only show our analysis, investment tools and how they help us in our operations when making decisions.