Elrond (EGLD): Decoding Reasons Behind More than 30% Weekly Recovery

The recent market crash impacted investors and digital tokens alike. The market-wide slump saw EGLD dipping towards the $72.02 low the previous week. Nevertheless, the alternative coin recorded impressive performance this week, gaining over 30% from the past week’s lows.

Though the somewhat attractive recovery by the altcoin, Elrond traded near $88.08 at this publication. The asset saw a 10.85% decline over the previous day. That reflects a substantial downside correction after hitting the $103.50 24hr high. Furthermore, the altcoin trades at a massive discount regardless of the latest rally. EGL explores $544 record peaks in November 2021, meaning it stays 82% lower.

The token’s Money Flow Index confirms enormous accumulation since EGLD dropped into the oversold region. The DMI indicator also reflected changes, with –DI recording a swift direction shift in downside favor. That shows bears lost strength after the token dipped beneath $80.

The On-Chain Front

Elrond, EGLD’s blockchain, has seen rapid growth as a ‘smart’ contract platform supporting Non-fungible tokens. Nevertheless, the network’s NFT trade volumes had declined following colossal surges early in May. That’s likely due to the beating of the NFT marketplace toll amid the recent bearish run.

The supply held by whale indicator also noted a substantial drop since the months started. Recently, this metric hit its lowest level over the past four weeks while the market bottomed. Nevertheless, it witnessed a notable surge between May 16 and May 17, contributing to EGLD’s upsurges.

Elrond retained impressive developer activity regardless of the market challenges. The developer activity supported several developments the platform saw over the past couple of days. For instance, the ecosystem declared integrating with Trust Wallet. That means investors can transact EGLD from and to the Trust Wallet, guaranteeing user flexibility.

Moreover, the past couple of days also witnessed Elrond revealing that AnChain introduced updated AML analytics on the ecosystem. The team described the development as a lucrative step towards Elrond achieving record standards for compliance and fraud prevention.

Such milestones will open the gates for institutional and public adoption. These announcements might have contributed to Elrond’s recent recovery and might impact its value in the long term.

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