Tellor (TRB), the cryptocurrency, has surged to levels not seen in 2.5 years, prompting the question of whether it could reach the $100 mark. The price of Tellor has skyrocketed, showing a remarkable 700% increase since it hit its annual low on August 17.
This impressive price surge has been closely following a parabolic ascending support line, creating a sense of anticipation in the crypto community about how long TRB can maintain this momentum.
Reaching New Heights
Tellor (TRB) has been on an impressive upward trajectory since the end of August. Over the course of 63 days, it has surged by a whopping 760%, culminating in a new yearly high of $85, achieved today.
During this rally, the altcoin successfully reclaimed the $80 horizontal resistance area, which had been a key level since May 2021. Notably, the current price marks the highest point in nearly 900 days, making this surge particularly significant for TRB enthusiasts.
One intriguing aspect of this rally has been the substantial whale activity in the market. On October 20, a cluster of whale wallets made a massive withdrawal of $9.50 million from centralized exchanges. Moreover, today, two other wallets withdrew nearly $2 million worth of TRB from the OKX and Binance exchanges. Such significant withdrawals from centralized exchanges could potentially trigger a supply shock.
Analyzing the Momentum
Examining the weekly Relative Strength Index (RSI) provides an optimistic outlook. Traders use the RSI as a momentum indicator to assess whether a market is overbought or oversold, aiding in their decisions to accumulate or sell an asset.
An RSI reading above 50, combined with an upward trend, signals that bulls maintain an advantage. Conversely, a reading below 50 suggests the opposite.
Currently, the RSI is above 50 and steadily rising, both indicative of a bullish trend. However, it's essential to note that the indicator is deeply within overbought territory, having reached an all-time high of 90.
Predicting TRB's Future
From a technical perspective, the daily timeframe analysis reveals that the surge since the end of August has followed a parabolic trajectory. While such an ascent is unsustainable over the long term, it can persist as long as the parabolic ascending support line remains intact.
If this support line holds, a notable cluster of resistances is situated between the $104.50 and $108.50 range. These resistances are formed by the 0.618 Fibonacci retracement level of the entire descent from the all-time high (white) and the 2.61 external Fibonacci retracement of the most recent drop (black).
Therefore, these levels are likely to serve as a potential peak if the Tellor price manages to reach them. This region stands approximately 30% above the current price.
Additionally, the daily RSI corroborates the potential for further upward movement. The indicator has broken free from its bearish divergence trendline (green) and is on an upward trajectory.
However, it's crucial to keep in mind that despite these bullish signs, a daily close below the parabolic ascending support trendline could result in a 45% drop to the nearest support level at $45.
The future for Tellor (TRB) remains promising, but as with any cryptocurrency, investors should exercise caution and stay informed about market developments. The crypto market can be highly volatile and subject to rapid changes, so a thorough understanding of the risks involved is essential for anyone considering an investment in TRB.
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