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Elrond: Credits for EGLD’s over 30% recovery on the charts goes to…



Source: Unsplash

The latest strike by the market bears left a significant impression on tokens and investors alike. Amidst the bear run and market-wide crash, EGLD dipped as low as $72.02 last week. However, the cryptocurrency delivered showed some positive performance this week after rallying by more than 30% from its previous week’s low.

Despite what can be called a better performance, EGLD traded at $88.08 at the time of this press, after a 10.84% drop in the last 24 hours. A significant retracement after achieving a 24-hour high of $103.50. The cryptocurrency is still trading at a sizable discount despite its latest rally. It peaked at $544 in November 2021, which means that it is currently trading at an 82% discount.

Source: TradingView

EGLD’s MFI indicator reveals that strong accumulation took place ever since after the cryptocurrency dipped into oversold territory. The -DI line in the DMI indicator registered a sharp directional change in favor of the downside. This indicates that the bears lost their momentum when the price dropped below $80.

A look at what is happening on-chain

EGLD’s native blockchain Elrond has been rapidly growing as a smart contract chain that supports NFTs. However, its NFT trades volumes has been declining after a massive volume uptick at the start of May. This is likely because the NFT market has taken a hit during the latest bear run.

The supply held by whales metric registered a notable drop since the start of the month. It recently reached its lowest point in the last four weeks as the market bottomed out. However, it did register a notable uptick between 16 and 17 May, and this contributed to EGLD’s upside.

Source: Santiment

Elrond maintained healthy levels of developer activity despite the market headwinds. That activity supported various developments that have taken place in the last few days. For example, the blockchain project recently announced that it achieved integration with Trust wallet. This means users can now transfer assets Elrond native assets to and from the Trust wallet, thus providing flexibility to users.

Furthermore, the last few also saw Elrond announcing that AnChain AI rolled out the next generation of AML analytic on its network. The development was described as a positive step for Elrond to achieve high standards for fraud prevention and compliance.

Such a major milestone will pave the way for public and institutional adoption. The announcements may have had a significant hand in aiding EGLD’s latest recovery and have the potential to contribute to its long-term value.

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Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael's writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis. His interests include motorcycles and exotic cars.

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