Telcoin settles down after a swift trend reversal – What’s next?
The short-term technical indicators were firmly bullish, but TEL traders and buyers shouldn't give in to FOMO.
Telcoin is up 13.3% in the past 24 hours, with a 177% surge in trading volume. The rally came from a retest of a key short-term support level at $0.00475.
The altcoin has been in a longer-term uptrend after news earlier in November drove a strong price surge.
On the 12th of November, Telcoin announced its final charter approval from the Nebraska Department of Banking and Finance to launch Telcoin Digital Asset Bank.
The charter would position Telcoin to be the first blockchain bank.
The bank’s flagship product, eUSD, would be the first bank-issued, onchain U.S. Dollar stablecoin.
This proves that a bank can issue onchain digital cash responsibly and in alignment with U.S. regulators, said Paul Neuner, Telcoin’s Founder and CEO.
The move drove overwhelming demand for TEL, the blockchain’s native token. It has been nearly three weeks since the announcement, and TEL has rallied by 83% since then.
Technical analysis showed a bullish trend in progress, but a consolidation phase has been underway over the past ten days.
Untangling the bull trend for Telcoin
The 1-day timeframe showed how the previously bearish structure was breached on the 12th of November. The $0.003 former lower high (orange) was overwhelmed, and new swing points of the uptrend were established.
The $0.00446 level was the key higher low that is keeping the uptrend alive. The imbalance (white box) from $0.0056-$0.0061 was a supply zone that has not been overcome yet.
The 1-hour chart showed a nine-day range formation (purple) from $0.0047 to $0.0057. The mid-point at $0.0052 has served as both support and resistance in recent days.
The OBV was rising higher over the past 24 hours, and the MACD formed a bullish crossover. Both indicated high buying volume and upward price momentum. However, traders shouldn’t be eager to bet on a breakout.
Instead, they should rein in the FOMO and use the range extremes to sell and buy TEL, even though the short-term price action and indicators were firmly bullish.
Therefore, TEL was not a buy, but a token on which lower timeframe traders should be booking profits.
Final Thoughts
- Telcoin rallied 83% after news of its charter approval to launch a Digital Asset Bank hit the markets, spurring demand for.
- The nine-day range high at $0.0057 needs to be flipped to support before traders look to buy. Till then, expect the range to persist.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
