TWT Technical Analysis: Trust Wallet Faces Bearish Turnaround at $2.25

The technical analysis of TWT indicates a lack of bull in the market with prices falling below the 200-day EMA, dragged by increasing selling pressure.

After a brief spell of reversal, Trust Wallet (TWT) is again on a bearish trend, registering a drop of 1.3% over the last 24 hours. TWT prices have been revolving between the range of $2.25 and $2.13 on the declining trend under the influence of a resistance trendline. A further drop may take the TWT below $2.10 which may trigger a selling spree in the market and strengthen the bearish momentum. A sharp drop of 56.11% in the 24-hour trading volume of TWT to 65.02 million and a 0.49% decline in market cap to $912.26 million, reflects a lack of enthusiasm in the market.

Key Points

TWT price action displays a downtrend due to increasing selling pressure Prices falling below 200-day EMA on the daily chart, reflect a bearish turnaround  The intraday trading volume in TWT is 65.02 million, with a 56.11% drop 

TradingView ChartSource: Tradingview

TWT Technical Analysis

TWT price action shows a bearish turnaround from $2.25 owing to high selling pressure caused by uncertainty in the crypto market after the fall of crypto exchange giant FTX. As prices fell below $2.15, TWT daily chart reflects a continuation of bearish momentum in the market. The multiple high-price rejection candles from the 200-day EMA show strong overhead opposition. If TWT manages to contain the current downtrend, the sideline traders may expect an entry opportunity at the potential reversal rally above the $2.25 price range. Conversely, if the token fails to reverse, the current downtrend may dump the TWT price below $2, sparking a selling spree.

Technical Indicators

RSI struggles to stay above the midpoint due to increased selling pressure. After a small spell of the surge in demand, the RSI dived down below the mark of 50 under 14-day SMA, making a bearish divergence. On the bearish histogram, MACD also declines to make a bearish crossover, approaching the halfway line.

Hence, the technical indicators show a prolonged downtrend in the market with RSI indicating rising selling pressure with no sign of a bullish reversal.

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