Trust Wallet Token (TWT) price broke above the 130-day descending resistance line on October 4. TWT reached a high of $0.97 before falling slightly to its current level of $0.90.
TWT clears the descending resistance trend line
TWT price has been falling below a descending resistance line since May 28. This line has rejected the price several times, most recently on August 15. This caused the cryptocurrency to drop to a low of $0, 71 on September 11.
The subsequent recovery created a long lower wick (green symbol) and a bullish engulfing candle. This is a type of bullish candlestick where the decrease of the entire previous period is covered by the next period.
Following this candle, the altcoin made a higher low on September 25 and accelerated its rise nine days later, reaching a high of $0.95. This is in stark contrast to the rest of the crypto market, which has been bearish since October 2.
The increase caused a break above the descending resistance line. At that time, the trend line had existed for 130 days.
Sometimes the price will return to this resistance line to confirm it as support before continuing to rise. However, the upward movement could also continue without any retracement.
TWT price prediction: Will the price reach $1?
Technical analysts use Elliott Wave theory as a means to identify recurring long-term price patterns and investor psychology, helping them determine the direction of a trend.
A closer look at the Trust Wallet Token’s wave count reveals the validity of the current increase. This can be clearly seen in the distinct three-wave structure of wave B. Therefore, TWT price may be in wave C or has started a new bullish impulse.
Creating waves A:C in a 1:1 ratio would result in a high of $1, slightly above the main horizontal resistance zone at $0.97. This price is 10% higher than the current price.
The RSI indicator also brings optimism when it broke above level 50 (green circle) and is increasing.
Despite this bullish prediction, a drop below the September 12 high at $0.83 (red line) would mean the price has made a local top.
In that case, a 20% drop to the $0.72 region could be the future price outlook.