Tokocrypto TKO Coin to Slide 6% on RSI divergence

YEREVAN (CoinChapter.com) – Indonesian exchange Tokocrypto TKO coin traded at $0.28 on Jan 5, after a turbulent quarter. Moreover, it could face another 6% slide in the coming days, based on several technical indicators. Without further ado, let’s review those indicators.

Tokocrypto TKO Charts Bearish

The Tokocrypto TKO coin daily chart indicated that the token has been trading within a rising channel since early Q4, 2023. The channel features two parallel rising trendlines that enclose the price action by connecting swing highs and lows.

The channel does not predict a bias after the token leaves the formation. However, it could be instrumental in predicting short-term price fluctuations for as long as the setup remains relevant.

Tokocrypto TKO coin price action retested the channel’s upper trendline on Dec 30 and dropped 15% since. If the coin is headed for the support line, another 6% loss could be in the books, with a target of approximately $0.27. Moreover, as a result of the recent decline, TKO price dipped below the 20-day exponential moving average (20-day EMA), retesting it as resistance.

Additional Bearish Factors Could Tank Tokocrypto Price

The chart above also points to a relative strength index (RSI) divergence. In detail, the RSI is a gauge of the most profitable market entry and exit points based on investor expectations. An RSI divergence is a dissonance between the indicator and the price action.

While the Tokocrypto TKO coin price printed higher highs, the RSI, conversely, insisted on lower highs, creating the mentioned divergence. It is considered to be a strong hint of a looming decline. The RSI divergence also backs the Channel’s short-term bearish prediction.

Additionally, Tokocrypto TKO coin’s trading volumes have declined 20% in the previous 24 hours. Coupled with the dropping price, the metric could indicate a lowering interest in the coin and possibly market manipulation by a few active bears.

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