Correction Rally Challenges 100-day EMA



Analytics


The TWT price action shows a bearish reversal from $1.18, dropping below the 50-day EMA near $1. So, will this falling trend break under $0.90?

Key Technical Points:

  • The Trust Wallet Token price has dropped by 15% in the last 72 hours.
  • The price action displays a triple black crow formation in the daily chart.
  • With a market cap of $394 billion, the intraday trading volume of Trust Wallet Token has increased by 22% to reach $17.88 million.

Past Performance of TWT

The TWT price action shows a bullish failure to cross above the $1.20 mark resulting in an evening star pattern leading to a sideways trend. The increased supply at $1.20 results in a downfall of 20% over the last two weeks and breaks under the psychological mark of $1. Moreover, the price action displays a triple black crow formation with a spike in trading volume, reflecting a boom in selling pressure. TradingView Chart Source – Tradingview

TWT Technical Analysis

The TWT price action displays lower price rejection in the daily candle, which is evident in the long tail formation, increasing the possibility of post-retest reversal. As the market price sustains above the 100-day EMA, the chances of EMAs maintaining a bullish alignment look promising. As the selling pressure increases, the daily RSI slope fails to sustain above the halfway line. Moreover, the MACD indicator displays a declining trend in the fast and slow lines with an increasing bearish gap after the recent crossover event. In a nutshell, the TWT Technical Analysis displays a high-momentum bearish trend challenging the 100-day EMA.

Upcoming Trend

TWT price trend experiences a high bearish influence teasing a drop below the 100-day EMA and the $0.90 support level. Traders can expect the fallout rally to reach the $0.83 support level. However, the lower price rejection projects a bullish reversal possibility to test the overhead resistance at $1.04. Resistance Levels: $1 and $1.18 Support Levels: $0.90 and $0.83


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