On Feb. 16, Telcoin (TEL) reached a yearly high of $0.012, but it has since nosedived from that height. Over the past seven days, Telcoin’s price has plummeted by 25%.
This leaves the altcoin’s value at $0.0087 as of this writing. The dramatic turn of events appears to be a correction that may not last long as indicators reveal that the dust around the token is settling.
Considering these signs, CCN analyzes TEL’s overall market condition, showing whether the recovery might be quick.
TEL Price Falls from Yearly High, Support Appears
Its integration with a traditional finance institution fueled TEL’s rally to $0.012. This development raised the demand for TEL, triggering a double-digit rally that most cryptos in the market failed to notch.
While the price has dropped lately, the In/Out of Money Around Price (IOMAP) reveals that the decline could be temporary. With the IOMAP, one can spot support and resistance by assessing the volume of tokens in unrealized gains or losses.
A higher volume “in the money” creates a buy wall, which is a strong support to prevent further declines.
On the other hand, a higher volume “out of the money” signals resistance, as holders may sell to break even when the price nears those levels. If this trend continues, it could trigger a pushback.
According to IntoTheBlock, the volume of TEL accumulated between $0.0073 and $0.0087 surpasses the purchases made between $0.0089 and $0.010.
This suggests strong support, increasing the likelihood that Telcoin’s price could break past the $0.010 region in the short term.
Signs of Recovery Emerge
From a technical perspective, the daily chart shows that TEL’s price has established support at nearly $0.0084. This has prevented the cryptocurrency from falling further.
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In addition to this, the Relative Strength Index (RSI) seems ready to overturn the downtrend it has faced. The RSI measures momentum, and when it declines, it means the trend is bearish.
However, as seen below, the RSI reading is flirting with the 50.00 midpoint, indicating that the selling pressure around TEL is no longer heavy. In line with the RSI reading, the Chaikin Money Flow (CMF) rating continues to hit new highs.
The CMF measures the level of accumulation or distribution around an asset. When it rises, it indicates rising accumulation, but a decrease indicates otherwise.
Therefore, this rise in the CMF reading signifies buying pressure around the cryptocurrency. Should the trend remain the same, Telcoin’s price might rise to $0.011 at the 0.236 Fibonacci level.
If demand for the cryptocurrency continues to rise, then the cryptocurrency’s value could rise to $0.013.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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