NOIDA (CoinChapter.com) — Telcoin’s native token, TEL, has been going strong since February 2024, rising more than 255% and hitting a daily high near $0.0039 on March 8. This rally helped TEL price reach its highest level since. April 2022.
The recent rise in TEL prices began after the blockchain project successfully restored user balances following an exploit, resulting in a 400% increase in deposits. recovery from security violation It is likely to contribute to Telcoin’s market performance by restoring investor confidence.
The price increase almost breaks the token out of its bullish pattern.
With the recent rebound in TEL price, Telcoin token price is ”falling wedge.’
A pair of converging trend lines forms a descending wedge pattern. This pattern occurs when an asset’s price makes lower highs and steeper lows than the highs.
TEL price formed a bullish pattern with a target of 2,070%. Source: Tradingview.com
Familiar patterns usually indicate a possible bullish reversal. Typically, the target price of a pattern is equal to the widest distance between the trend lines at the beginning of the pattern plus the breakout point.
A significant breakout can signal strong market confidence, making the trend more likely to continue.
According to technical analysis rules, if the pattern unfolds, TEL price could surge nearly 2,720%, reaching the theoretical price target near $0.0615.
The rally sparked a social media shilling campaign for the TEL token, with several posts like the image above making the rounds. Considering that even a 2,700% rise would bring TEL price closer to $0.06, the trader’s target of “$0.15+” is ridiculously high.
In addition, it is unlikely that the price of TEL will suddenly rise to the pattern target price. Often, when a token breaks out of a pattern, a rally occurs where the token price gains a portion of its theoretical target before correcting.
61% WTD Rally
Telcoin price is up more than 61% WTD from its daily low of $0.0025 on March 4th. The Bulls targeted the $0.004 price level before the Bears started booking profits.
Moreover, TEL’s Relative Strength Index remains overbought at 88.06 on the daily chart. RSI is a momentum indicator that measures asset price movements to identify overbought or oversold conditions. Overbought RSI levels indicate the presence of strong bullishness in the market.
However, traders often view overbought RSI levels as bearish signals. This is because it usually precedes a bearish reversal or consolidation phase in the underlying token.
Therefore, if TEL price growth stalls, the token may fall towards the 0.382 Fibonacci support level near $0.0034. A violation of this immediate support would have Telcoin price testing the 20-day EMA (red wave) support near $0.0025 before recovery.
On the other hand, if the bulls continue to push TEL price higher, the token may rise to the 0.618 Fibonacci resistance near $0.0047. A reversal of the 0.618 Fibonacci resistance may lead Telcoin token price to resistance near $0.0057.