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Cardano and Elrond forming a local bottom?

Today’s article will be about to interesting altcoins, which I believe, can be forming local bottom, meaning we can be seeing an upward movement.

Cardano

Cardano has formed a double TOP formation at the beginning of April, but since then, it has been only losing value. But the current dynamics of the downward movement is getting weaker and weaker. Most of the indicators in combination with sentiment and the 4hour chart are pointing to one direction. The local bottom can be close. The Elliot wave theory would suggest that 5th wave of price decline is close to 0.7796 USDT.  

TradingView Chart

4h chart of Cardano, Source: Author’s analysis, tradingview.com

We are also approaching one of the critical levels of volumes and liquidity. The level of 0.85 USDT can be thought of as a magnet where we can also expect higher volumes of buy orders. From my point of view, Cardano is looking pretty good right now, but we would need to wait for a strong upward movement to make sure that trend has changed.

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Elrond

Elrond has started its fall at the end of March. At first, the move was much stronger, but just like with Cardano, as of now it is mostly a sideways movement. At the daily chart, EGLD is in a huge triangle, in two longer term trendlines.

Zooming a bit in, 4h chart is at a very strong support, which is why I believe that we are more inclined to break the upward resistance. Looking at the liquidity and stoplosses, last days have created new lows, which means, there was a kind of an attack at the stop losses, which I believe has ended now.

TradingView Chart

4h chart of Elrond, Source: Author’s analysis, tradingview.com

Just like with Cardano, Elrond needs to see a proper upward movement and a break through 154 USDT. If EGLD moves above this level, there is a potential for a bigger rise.

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Conclusion

Both Cardano and Elrond are looking interesting now, but we need to see a break above certain levels to be sure that the rise is incoming. From the trading point, this is where I would be looking at the entry to the positions.

Jakub is a crypto trader and founder of Trader 2.0 project, which helps hundreds of traders from central Europe to understand cryptocurrency trading and its challenges. Jakub not o...

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