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- Trust wallet token slipped below 50 day ema but able to sustain above 200 day ema and formed bullish hammer candle
- MACD generated negative crossover and approaching zero line with a bearish histogram bars whereas RSI at 34 may enter oversold zone
Trust Wallet Token had trading with bearish cues and struggling to defend 200 day ema support level. As per coinglass, In the last 12 hours, Longs and Shorts ratio stood at 0.97 which indicates mild bearishness in coming days while the current TWT/USDT price is trading at $1.6300 with the intraday loss of 4.60% and 24 hour volume to market cap ratio stood at 0.0808
Is a Bullish Hammer candle sustainable or a bull trap ?
On a higher time frame, Trust wallet Token had been an out performer in previous month and has generated fantastic returns to its investors. In the past couple of months TWT has been trading in tight range between $0.5022 to $1.2271 later in mid november
TWT bulls succeed to breakout higher levels with a massive volume and jump almost 125% in a short span of time hitting highs at $2.7180 but unfortunately after a little bit of consolidation prices unable to sustain higher levels and slipped below 50 day ema with a strong bearish candle, which will now act as an immediate hurdle in coming weeks.
As of now bulls had defended the 200 day ema but have not shown any meaningful recovery from the the lower levels indicates responsive sellers are active on higher levels and prices are expected to trade in range between $1.2271 to $2.000 in coming weeks. The MACD had generated negative crossover indicating prices to remain weak for some more time whereas RSI at 34 pointing down may enter the oversold zone in coming days.
Is the correction a buying opportunity ?
On a lower time frame, The TWT picture is similar to the daily time chart. After the massive breakout in November prices become little stable and traded sideways in the range between $2.0000 to $2.7180 but recently sellers succeed to break the lower range which triggers fearful selling and drag the prices down towards $1.2457
The supertrend indicator had also generated sell signal which indicates short term trend to remain weak whereas if bulls succeed to trade above resistance level of $2.0000 we may see an upside trend reversal. On a lower side $1.2271 will act as an important support zone in coming days and if price slips below $1.2271 we may see more downside towards $1 and below levels.
Summary
Trust wallet token had lost its positive price momentum and forming a lower lows candles from the past couple of days. As per technical analysis, prices are likely to trade in the range between $1.2271 to $2.000 in coming weeks and further expansion is possible when range will be broken. So as of now traders must look for sell on rise opportunity near $2.0000 levels for the target of $1.2271
Technical levels
Resistance levels : $2.0000 and $2.7180
Support levels : $1.0000 and $0.5022
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
