EGLD, the native currency of the scalable smart contract blockchain network, Elrond networkon 20 August it exited a descending wedge in an uptrend.
Sharing a significant positive correlation with the leading cryptocurrency, Bitcoin, EGLD has been impacted by the general recession that has plagued the cryptocurrency market since the beginning of this month.
After the impressive July rush that caused the coin to rise by 16%, it has since experienced a double-digit decline since early August, data from CoinMarketCap revealed.
At press time, the token was trading at $ 52.51.
A breakout of a descending wedge is usually a harbinger of price growth. But is that enough for investors to ape on the EGLD coin?
Keep your horses
On a daily chart, the key indicators to chart EGLD’s trading momentum are positioned to negate the belief that a bullish reversal was in progress.
At the time of writing, the coin’s Relative Strength Index (RSI) was below the neutral 50 region at 39. Even in a downtrend, the Money Flow Index (MFI) was positioned at 35.
At -0.09 at press time, the Chaikin Money Flow (CMF) dynamic line was positioned below the center line (0.0) indicating a significant drop in EGLD price pressure.
This is the case when an asset is distributed in a meaningful way.
This was further confirmed by the location of the MACD which at the time of this writing consisted predominantly of red histogram bars.
The MACD line has intersected with the trend line in a bearish trend since August 15th. Therefore, indicating that the sales pressure for EGLD had increased in the past few days.
Source: TradingView
Chain analysis
Since the beginning of the month, EGLD hasn’t managed to get much traction on the social front. After its social dominance soared to a high of 0.144% on August 9, it has since dropped 86%.
At the time of writing, the token’s social dominance was 0.019%, according to data from Sanctity.
At 12 at the time of writing, the social volume of the coin fell 85% after the high of 8 August.
Source: Santimento
In addition, 55.29 million transactions have been processed on the Elrond Network in the past week. This was a 5% drop from the 54.73 million transactions processed the week before.
13.35 million EGLD coins were staked on Elrond last week. The week before, 13.33 million EGLD coins were staked.
Additionally, the network’s decentralized exchange, Maiar Exchange, has experienced a 13% drop in its Total Locked Value (TVL) over the past week.
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? @ElrondNetwork
1.79 million accounts • 55.29 million transactions • 13.35 million staking? @getMaiar
1.06 million users • 121,000 user bets $ EGLD⚡ @Maiar Exchange
$ 438 million in TVL • $ 14 million in 7d volume– Elrond ⚡️ (@ElrondNetwork) August 22, 2022
With no significant ecosystem updates on the network in recent months, development activity has been on a downward spiral for several months now.