After experiencing a sharp 30% correction from its peak on Feb. 17, Telcoin’s (TEL) price is now approaching oversold territory.
The drop toward this point suggests that selling pressure may be reaching exhaustion, giving the token a chance to rebound.
However, technical indicators reveal that this potential bounce could depend on several factors. Will Telcoin price recovery be quick, or is more downside ahead?
Telcoin Bears Exhausted
Some weeks back, Telcoin’s price climbed to a yearly high of $0.012. By March 3, it had fallen to $0.0080.
This decline happened due to rising selling pressure around the cryptocurrency. According to the daily chart, the correction has also left TEL close to the oversold region, as shown by the Money Flow Index (MFI).
The MFI measures the flow of capital into and out of a cryptocurrency. It also reveals if an asset is overbought or oversold.
When the MFI reading is above 80.00, it is overbought. However, if it is below 20.00, it is oversold.
According to the daily chart, Telcoin’s price hovers around $0.0084. The MFI on the same timeframe hovers around 22.64, meaning TEL is nearly oversold, and a bounce could happen in the short term.
Should the indicator’s reading continue to fall, then TEL could reverse the downtrend and erase part of its recent losses.
However, this might only happen if it does not break below the $0.0072 support and breaches the $0.0088 resistance.
TEL Price to Erase One Zero?
Analysis of the 4-hour timeframe also seems to agree with the Telcoin price recovery thesis. Based on the image below, TEL has strong support at $0.0074 and another near $0.0081.
Sustaining these key levels might be crucial to TEL’s short-term performance. From the looks of things, bulls are ensuring that the price does not drop below $0.0074.
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An indicator of this is Bull-Bear Power (BBP), which gauges the strength of bulls (buyers) compared to bears (sellers).
When the BBP reading is negative with red histogram bars, it means bears are in control. In that case, the price might decrease.
But in this situation, the BBP reading is positive, indicating that bulls have the upper hand. Should Telcoin bulls continue to dictate this setup, the price could be higher.
Regarding the short-term outlook, rising bullish dominance could push TEL’s price to $0.11.
However, if bears kick bulls out of the way, this prediction might not come to pass. In that scenario, TEL could experience a decline to $0.0067.
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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