TEL Rally of 255% Leaves Telcoin Primed For A Massive Jump

NOIDA (CoinChapter.com) — Telcoin’s native token, TEL, has been on a bull run since Feb. 2024, amassing over 255% gains to reach a daily high near $0.0039 on March 8. The rally helped TEL price reach its highest level since April 2022.

The recent TEL price rally started after the blockchain project successfully restored user balances after an exploit, leading to a 400% increase in deposits. The recovery from the security breach restored investor confidence, likely contributing to Telcoin’s market performance.

Price Rally Puts Token Close To Breaking Out Of Bullish Pattern

TEL price’s recent rally brought the Telcoin token price close to breaking out of a bullish technical pattern called the ‘Falling Wedge.’

A pair of converging trend lines form the falling wedge pattern. The pattern occurs when an asset’s price makes lower highs and lower lows steeper than the highs.

TEL price formed a bullish pattern with a 2,070% price target. Source: Tradingview.com

The familiar pattern typically signals that a reversal to the upside is likely. Customarily, the price target for the pattern is equal to the widest distance between the trend lines at the start of the pattern added to the breakout point.

A breakout with substantial volume can signify strong market conviction, thereby increasing the likelihood of continuing the trend.

According to the rules of technical analysis, if the pattern pans out, TEL price could spike nearly 2,720% to reach a theoretical price target near $0.0615.

The rally sparked a social media shilling campaign for the TEL token, with several posts like the one in the image above doing the rounds. The trader’s target of “$0.15+” is laughably high, given that a 2,700% rise would only bring the TEL price near $0.06.

Furthermore, it is unlikely that TEL price would spike to the pattern’s target price in one go. Often, a token’s breakout from a pattern results in a rally that sees the token’s price gain a portion of the theoretical target before correcting.

Rally of 61% WTD

Telcoin price has rallied over 61% WTD from March 4’s daily low of $0.0025. Bulls targeted the $0.004 price level before bears started booking profits.

Moreover, the relative strength index for TEL remained overbought, with a score of 88.06 on the daily charts. RSI is a momentum indicator measuring asset price movements to identify overbought or oversold conditions. The overbought RSI level indicates the strong presence of bulls in the market.

However, traders often consider an overbought RSI level a bearish signal since the occurrence usually precedes a bearish reversal or consolidation phase for the underlying token.

Hence, if the TEL price rally stalls, the token could fall to the 0.382 Fibonacci support near $0.0034. Breaching this immediate support would see the Telcoin price test for the 20-day EMA (red wave) support near $0.0025 before recovery.

On the other hand, if bulls continue TEL price rally, the token could rally to the 0.618 Fibonacci resistance near $0.0047. Flipping the 0.618 Fibonacci resistance could drive the Telcoin token price to the resistance near $0.0057

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