What is ERD Elrond Network? – Fundamentals & TA

What is (ERD) Elrond?

The Elrond Token (ERD) is used to secure and support the Elrond Network. It is a proof-of-stake (POS) blockchain platform for highly scalable, fast and secure distributed apps (dApps).

With its Adaptive State Sharding, it’s able to achieve a near instant transaction speed (testnet exceeded 10,000 transactions per second) and drastically improve scalability. Using a unique POS system called “Secure Proof of Stake”, it rewards people for:

  • Staking ERD (up to 36% in rewards per annum)
  • Running a node
  • Processing transactions
  • Producing blocks
  • Reaching consensus

23 Days to Elrond Mainnet

As of writing this post, the launch of the Elrond Mainnet is 23 days away. During this launch, ERD will shift from an ERC-20 token to Elrond's native token, and their platform will become fully operational. This could explain the recent pump in price.

  • Staking rewards are currently 25% per annum for validators and delegators, but this will increase to 36% per annum after the mainnet launch.
  • Elrond’s market-cap is at $96.4 million right now. It will be interesting to see how the mainnet release will affect it. 

ERD Price Analysis - Big Parabolic Moves Ahead?

On the daily ERD/BTC chart below, we have closed a large, confident candle over 71 satoshis (sats) which has been resistance for the past three weeks. ERD may test this in the coming days as this 70-71 sat level should now serve as a support area since new buyers will be looking to get into position at these prices. If price closes a daily candle underneath, the next level of support is at approximately 60 sats. If ERD closes below that, price may go all the way down to 33 sats. The ERD token has taken out all the highs, except for 191 sats, and with the upcoming mainnet launch, this chart is looking very bullish. New highs above 200 satoshi could send Elrond into a parabolic drive.

ERD Elrond-July-2020

On the 4 hour chart below, we can see a breakout of an ascending triangle. It has not yet met its measured move and seems to be consolidating around 80-75 sats. We may see that test of 71 sats before more upside but if we start closing candles underneath the triangle, that would not be a good sign. We are currently in no man’s land as there is no resistance further up ahead. Fibonacci retracements can be used in this case to get rough upside targets, as well as candlestick and trend analysis. 

ERD Elrond-July-2020

ERD Elrond - Bottom Line

With the upcoming Elrond Mainnet Launch, price has been trending to the upside, and as we get closer to the date, we may see large parabolic moves. It will be interesting to see price action after the mainnet launch. The fundamental and technical aspects of this coin is definitely worth keeping a close eye on.

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