The Elrond price rebounded on Tuesday after the significant sell-off that happened on Monday. The EGLD token rose to an intraday high of $228.50, which was about 35% above the lowest level on Monday. This jump brought its market capitalization to more than $4.24 billion, making it the 33rd biggest cryptocurrency in the world.
Why EGLD rebounded
Elrond is a leading blockchain project that was built based on inspiration from Ethereum, Zilliqa, and ChainSpace. The platform’s inspiration from Zilliqa was its use of adaptive sharding mechanism that breaks down blocks in a bid to increase speed. EGLD is the native token for its ecosystem.
Elrond has had a spectacular growth in the past few months. The EGLD price has risen by more than 1,000% this year alone, pushing its ranking to the top 40. This growth has been helped by the overall strength of cryptocurrency prices. In particular, it rose because of the rising demand for Ethereum-killers.
There are other reasons why Elrond price has rallied recently. For one, the number of developers using its technology has been on an upward trend. For example, recently, Tatum integrated with Elrond’s network. Tatum is a scalable blockchain platform that allows any developer to build decentralized technologies without any blockchain-specific knowledge.
Elrond has also partnered with MyContainer, Alchemy Pay, Copper, and Blockbank. Notably, Elrond’s EGLD was made available in KuCoin, one of the biggest cryptocurrency exchanges in the world. Additionally, the launch of DeFi capabilities following the Maiar exchange launch also contributed to the rally.
Today, the Elrond price is rising because of the overall rebound of the cryptocurrency, commodities, and stock market. This is likely a dead cat bounce, meaning that the coin could resume the bearish trend later this week.
Elrond price forecast
The daily chart shows that the Elrond price has bounced back after falling sharply on Monday this week. Still, the coin remains about 28% below the highest point this month. The coin also remains below the important resistance at $245, which was the highest point in April. It has also moved slightly above the 25-day and 50-day moving averages.
Therefore, in my view, I believe that the EGLD price is not yet in the buying zone. This rebound could be part of a relief rally or a dead cat bounce. Therefore, bulls should wait for a few days before getting in.
