Telcoin's Price Struggles as It Drops 35.61% This Week

TEL/USDT has been struggling this week, dropping 35.61% in price. Even with bullish developments, the price action left much to be desired, indicating that technical factors currently override fundamentals in the short term.

Telcoin (TEL) has been struggling to maintain bullish momentum, leading to a 35.61% drop in price this week. Even with recent developments, such as the integration of Chainlink's Price Feed and the launch of Telcoin Light, the technical indicators are suggesting that technical factors may be overriding fundamentals in the short term.

As of the last trading at 03:30 GMT on Friday, Telcoin is trading at $0.005816, down 35.09% in the past 24 hours, with 24-hour trading volume at 3.69M. The RSI at 39.01 indicates that the token is still in the oversold territory, and there is more room for recovery.

On the other hand, the price action is also highlighting some key support and resistance levels to watch. A failure to hold the support at $0.0050 could open the door for a move towards the next potential target at $0.0040, which coincides with the 200-day Simple Moving Average (SMA).

On the other hand, to build any bullish momentum, the price must rise above the resistance levels at $0.0075 and $0.012 to set the stage for a continuation of the uptrend.

At the current price level of $0.005816, the majority of Telcoin holders are in profit, with only a small portion at a loss.

According to on-chain analysis, at the current price, 98.31% of the total Telcoin supply is suggesting that most holders are in profit, while 1.48% of TEL holders are "Out of the Money," indicating a small portion of investors bought at higher prices and are at a loss.

Furthermore, 0.21% of TEL holders are at breakeven, having purchased the asset near its current price.

The analysis also reveals that in September 2024, when Telcoin was trading at $0.001349, 53.08% of holders were in profit and 45.31% were at a loss.

The significant increase in profitable holders today suggests a strong bullish trend over time. However, potential resistance zones could emerge if Telcoin approaches $0.0070-$0.0075, as some loss-making holders may seek to exit.

On the other hand, critical support may form in the $0.0040-$0.0045 range, where some profitable holders might accumulate more tokens. Overall, with a dominant percentage of profitable holders (98.31%), Telcoin's on-chain data reflects positive market sentiment, low immediate sell pressure, and the potential for further price appreciation if key resistance levels are breached.

Telcoin has been performing poorly in recent times, and the price action suggests that technical factors may be overriding fundamentals in the short term. Despite the integration of Chainlink's Price Feed and the launch of Telcoin Light, which aims to expand the token's use cases, the price has struggled to maintain bullish momentum.

As the price dropped below the crucial support at $0.0075, it opened the door for further downside towards the next potential target at $0.0040, which also coincides with the 200-day Simple Moving Average (SMA).

A failure to hold this support level could set the stage for a continuation of the bear market, potentially pushing the price towards the final support at $0.0010, which is the all-time low.

However, to build any bullish momentum, the price must rise above the resistance levels at $0.0075 and $0.012 to set the stage for a continuation of the uptrend.

Once the price breaks above these resistance levels and closes above them on the daily chart, it could open the door for a move towards the next resistance at $0.021, which is the high reached in January 2022.

The RSI at 39.01 displays overall weakness still. The first sign of recovery should be the rise above $0.0075.

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