Understanding the Recent Surge in Trust Wallet Token (TWT) Price
Trust Wallet Token (TWT) recently experienced a major price jump, touching $1.33 before correcting to its current price of around $1.10. This impressive 37% rally in the last 24 hours caught the attention of crypto enthusiasts and traders alike. But what drove this sudden move, and where might TWT be headed next?
The Breakout: What Sparked the Movement?
The price surge was significantly influenced by a tweet from Binance founder CZ. However, technical indicators suggest the breakout had been forming well before the social media hype. An inverse head-and-shoulders pattern was evident on the 2-day chart, which typically signals a reversal and price rally.
Once the pattern’s target of $1.17 was reached, traders rushed to take profits, pushing TWT into a corrective phase. According to market data, exchange net flows saw a massive shift, with 2.84 million TWT flowing onto exchanges shortly after the rally — a staggering 1,600% increase in token movements.
Profit-Taking Dominates: Whale Wallet Activity
A closer look at whale wallets reveals significant profit-booking. Wallets holding 10 million to 100 million TWT reduced their holdings from 248.9 million to 241.4 million tokens, amounting to a sell-off of approximately $8.23 million.
This activity underscores the rising selling pressure, as both large holders and retail traders rushed to lock in gains. The lack of whale accumulation further adds to the downward pressure on prices.
Technicals Paint a Mixed Picture
Despite the recent excitement, long-term technical signals remain cautious. Notably, the hidden bearish RSI divergence — higher highs on RSI versus lower highs on the price chart — hints at weakening momentum.
Key support levels for TWT currently sit at $1.00, $0.84, and $0.71. A breach of the $0.71 level could lead to deeper losses toward $0.63. Conversely, strong upward momentum requiring a daily close above $1.42, and ideally $1.63, could reignite trust in a sustained rally.
What Lies Ahead for TWT?
The Trust Wallet Token’s breakout appears to be a short-lived target-hitting move rather than the start of a long-term bullish trend. The focus now shifts to critical support at $1.00. Holding above this level is key to avoiding further corrections, while broader market sentiment and whale activity will play a significant role in determining TWT’s next move.
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Disclaimer
The above article is for informational purposes only and does not constitute financial or investment advice. Always conduct your own research and consult with a professional before making any financial decisions.
