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After rising 150% in four days, the Telcoin price has paused. But has TEL done enough, or is another leg higher imminent? And if so, how high can it go?
Telcoin is trading at $0.0191, down $0.004 (-1.76%).
Over the last 10 days, the cryptocurrency market has roared back to life. After reversing from the 20th of July lows, many crypto assets have posted double-digit gains. Telcoin went one better.
Between the 20th and 24th of July, TEL roared higher from $0.00918 to $0.0227, increasing 153%.
As a result, TEL’s market cap reclaimed a $1 billion status. Furthermore, the token increased its ranking to the 74th-largest cryptocurrency.
However, like Bitcoin, which is struggling to clear the elusive $40,000 barrier, the Telcoin rally has run aground at a key resistance level.
We can see on the daily chart that Tecloin reversed from the resistance of a descending trend line from the May $0.06499 all-time high. The descending trend at $0.02327 was reinforced by the presence of the 50-day moving average at $0.02250 and the 100 DMA $0.02461.
This has resulted in a strong area of confluent resistance, which has so far capped the rally.
However, if the Telcoin price can hurdle this area of resistance, the bulls will be eyeing a test of the ATH.
Below the market, the 200 DMA offers strong support at $0.0147. And following that, significant horizontal support is seen at $0.0094.
For now, the price is digesting the recent rally and, unless a bullish catalyst materialises, may trade sideways between the support of the 200 DMA and the considerable upside resistance. However, like many altcoins, the next direction is somewhat reliant on BTC. If the market leader convincingly advances beyond $40k, TEL is likely to break higher.
On the other hand, if Bitcoin fails and reverses lower, Telcoin will probably follow suit.