Alien Worlds (TLM) has broken out from the $0.26 horizontal resistance area and validated it as support afterwards.
The token has also broken out from a symmetrical triangle and could accelerate its rate of increase once it moves above $0.315.
TLM reclaims horizontal level
TLM has been moving upwards since June 26, when it reached a low of $0.066. Initially, it struggled to move above the $0.26 horizontal area, being rejected on July 15 and creating a long upper wick (red icon).
However, it finally managed to break out on July 24. Since then, it has returned to this level several times (green icons), validating it as support.
Technical indicators are relatively bullish, since the MACD is positive and the RSI is above 50. However, both have decreasing momentum. Furthermore, the Stochastic oscillator has made a bearish cross. Therefore, while the price action is bullish, technical indicators leave a lot to be desired.
The closest resistance area is at $0.50. This is both a horizontal resistance area and the 0.5 Fib retracement resistance level. Above it, the final resistance area is at $0.74, created by the April double top.
Cryptocurrency trader @Thebull_crypto outlined a TLM chart, stating that due to the reclaim of the $0.26 area, it could go to $0.50. As seen above, this area coincides with the 0.5 Fib retracement resistance level and is the closest resistance are above the current price.
The shorter-term six-hour chart is bullish, supporting the continuation of the upward movement.
TLM has broken out from a symmetrical triangle and validated it as support afterwards (green icon).
While it has yet to initiate a significant upward movement, an increase above the minor $0.315 resistance area could be the catalyst for a sharp increase.
Since triangle are either four or B waves, it is possible that this specific triangle is the B wave of an A-B-C corrective structure.
If so, the two most likely targets for the top of the upward movement would be at $0.40 and $0.50.They would give waves A:C a 1:0.618 and 1:1 ratio, respectively.
The latter would also coincide with the main resistance area outlined in the first section. Therefore, it will likely act as strong resistance if TLM manages to get there.
A decrease below the $0.255 low would invalidate this particular wave count.
For BeInCrypto’s latest bitcoin (BTC) analysis, click here.
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.