Elrond’s price is trading above a critical trend line support established in February.
The 50-day simple moving average (SMA stranglehold) on EGLD is drawing close. Elrond has introduced a new staking proposal aimed at expediting decentralization.
Elrond’s price is on the verge of a significant collapse. Consequently, it will test trend line support and might push EGLD all the way down to its February low of $89.31.
Elrond Aims to Capitalize the Ecosystem
EGLD proposes an interim adaption of several staking processes. This was to align better incentives toward increased decentralization in a new staking proposal.
Staking Phase 3.5 will make three fundamental changes. First, increasing the APR for a base and top-up stake. Second, allowing current validators to become staking providers. Finally, consolidating validator nodes into betting pools.
The objective of the top-up and base APRs is to reduce the floor APR from 21% to 20%. It also aims to increase the top-up APR from 9% to 14%. By narrowing the payoff differential between the base and top-up stakes, staking more EGLD becomes more appealing. This further allows staking providers to increase their striking caps.
An existing validator must not stake, unbind, and create a new staking pool to become a staking provider. A validator can choose to convert its standalone validator nodes bet from its wallet into a staking pool in the future.
The final modification addresses the issue of integrating existing validators and staking pools. Additional validators must currently add by setting up a node, stakeing EGLD and then waiting for the validator to move through the queue without receiving any rewards at this point. As a result of the change, a staking pool will allow an external wallet. As a result, all validator nodes staked from that wallet.
After then, the allowed wallet’s stake can combine with the Pool’s stake, and all rewards will appropriately have allocations.
The modifications will take effect by the middle of June. It will ensure that the staking community’s enthusiasm continues to grow. Additionally, a clear proof of stake ecosystem will increase decentralization and network security, attracting other beneficial use cases.
Elrond’s price has been a noticeable laggard compared to the broader crypto complex since February. It formed a negative price pattern that has been barely supported by a multi-month trendline that began in mid-February. The 50-day simple moving average has provided more support (SMA).
The most recent effort to set a new all-time high failed due to key resistance at the 161.8 percent Fibonacci extension of the 2019-2020 downturn at $233.36. Additionally, the extension level halted the rally in February.
It might be an organic catalyst or the beginning of a bear market in the entire bitcoin industry. Nonetheless, Elrond’s price seems primed for a significant decrease in the coming weeks, maybe reaching 50% of its current value.
Unless Elrond’s price closes above or below the key trend line, selling pressure will overpower the altcoin. It will also drive it down to the April 18 low of 0.000002 BTC Following a close below the main trend line, Elrond’s price is likely to go down to its April 18 low of $18.104.22.168. The 23.6 percent retracement of the rise from the end of October 2020 to the beginning of April 2020, which is $106.01, provides additional support.
Elrond’s bearish target is at the intersection of the 200-day SMA at $89.23 and the February low of $89.31. Any more decline implies an increased worsening in the Elrond network’s fundamental outlook.
The possibility of Elrond price reversing the negative trend is low, but if it does, the only relevant obstacle is the 161.8 percent extension level of the 2019-2020 slide.