TWT Technical Analysis: Retest Phase Teases Cup And Handle Pattern
Table of contents
The TWT price action exhibits a bullish failure to exceed the psychological mark of $1 due to excessive selling resulting in a bearish turnaround. Currently, the price action shows a lower price rejection candle retesting the 50-day EMA. So, will the post-retest reversal rally break above the $1 mark?
Key Points:
Source - TradingView
TWT Technical Analysis
As we mentioned in our previous analysis, the TWT price action reverses from the 200-day EMA to break above the long-coming resistance trendline. The bullish breakout candle shows a price jump of 7.17% to reach the psychological mark of $1.
The price action displays a 12% jump in the last four days, leading to a streak of bullish candles. Furthermore, the lower price rejection in the present daily candle projects a high possibility of a post-retest reversal from the 50-day EMA.
Additionally, the price action exhibits a rounding bottom pattern with a neckline at the psychological mark of $1. The bullish breakout of the $1 mark will result in a price jump to the swing high at $1.18, accounting for an 18% rise.
Conversely, the bearish trend will dump the TWT prices to the $0.95 mark, endangering the 50-day EMA.
Technical Indicators
The RSI slope crosses above the 14-day SMA and the halfway line, reflecting a boom in underlying bullishness. Additionally, the bullish crossover between the fast and slow lines reflects an increase in buying pressure.
Therefore, the technical indicators highlight the increasing demand for the Trust Wallet Token in the recovering market. As a result, the TWT technical analysis signals a buying opportunity at the current market price.
Resistance Levels - $1 and $1.18
Support Levels - $0.95 and $0.90