The price of Tellor (TRB) has broken above the long-term resistance area and is currently confirming it as support. If successful, the uptrend may continue in the near future.
However, there are signs indicating that a top has been formed or is very close.
Breaking Long-Term Resistance
The price of Tellor (TRB) has surged by 577% since August 21, 2023. This move has helped the price break above the long-term resistance area at $45 and reach a new yearly high of $67.5.
Although the breakout candle from last week had a long upper wick, a sign of selling pressure, the candle’s body being more than half of the candle’s range indicates that the bulls are still in control.
Currently, it is confirming this area as support. If successful, it could rise to the next resistance area at $74, which is 45% higher than the current price.
However, the weekly RSI indicator has entered deep into overbought territory, indicating that the uptrend may be overextended in the medium term, and a top might be very close.
Short-Term Outlook
On the daily timeframe, the TRB price successfully flipped the $45 area into support on October 5th (green arrow). The following day’s bullish engulfing candle indicates strong buying interest at lower levels, suggesting that the upward momentum is still intact.
However, the daily RSI indicator has created a significant bearish divergence. This occurs when the price increase is not supported by momentum and is often followed by sharp corrections.
Therefore, TRB price might consolidate between $45 and $62 for a few more days.
Conclusion
The most likely scenario suggests that TRB price will consolidate between $45 and $62 in the near future.
The significant bearish divergence in the daily RSI indicator and the deep overbought condition in the weekly RSI indicator indicate that TRB price may have formed a top. Consequently, a substantial correction could occur after the consolidation period ends.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
Read more:
- Pepe (PEPE) Price May Drop Further In The Near Future, Here’s Why?
- Bitcoin’s On-Chain Metrics Signal Bullish Optimism: CryptoQuant Analysis