Telcoin (TEL) Price Gains 90% — Now Facing Overbought Pressure

Key Takeaways

• A parabolic rally into wave 5 completion.
• Potential correction before final wave extension.
• Fibonacci targets at $0.0127 and $0.0147.

Telcoin (TEL) has experienced a parabolic rally, recently reaching wave 5 of its Elliott Wave structure.

The daily chart highlights a breakout from consolidation, leading to an explosive surge.

Meanwhile, the 1-hour chart suggests that TEL is undergoing a brief correction before a potential continuation toward higher Fibonacci targets.

TEL Price Analysis 

Telcoin’s daily chart presents a strong five-wave impulsive structure, culminating in a sharp rally from a low of $0.0067 to a high of  $0.012, an increase of nearly 90% since last Monday.

The breakout from a symmetrical triangle near wave 4 propelled the price into wave 5, confirming bullish momentum. 

Currently, the price has touched a significant resistance level near $0.0127, coinciding with previous local tops.

The Relative Strength Index (RSI) is firmly in overbought territory, suggesting that the asset may face short-term exhaustion.

Historically, such levels often lead to corrective pullbacks before another attempt at continuation.

Wave 5’s structure suggests that the current high might not be the final top. However, a corrective retracement could bring TEL back to lower Fibonacci retracement levels before a potential final leg higher.

If momentum sustains, the price may extend towards the 1.618 Fibonacci extension near $0.0147.

A break below the $0.0109 level would invalidate the immediate bullish scenario, signaling a deeper retracement.

TEL Price Prediction

The one-hour chart provides a more granular view of the ongoing wave structure. TEL is currently forming a contracting triangle, indicating a lower-degree wave (iv) correction before a potential breakout to the upside.

This correction aligns with the classic Elliott Wave principle, where wave 4 consolidates before the final leg is higher in wave 5.

Wave (iii) demonstrated strong momentum, surpassing the 1.0 Fibonacci extension at $0.0109, validating the ongoing bullish structure.

If wave (iv) continues its triangle formation, the eventual breakout could push TEL toward its next major resistance at $0.0127 (1.272 Fibonacci level), with an ultimate target at $0.0147 (1.618 extension).

We can see that the count inside the triangle is likely, and ABCDE correction further hints at more upside to come. 

On the downside, key support levels are observed at $0.0096 (0.786 retracement) and $0.0085 (0.618 retracement).

If a deeper correction occurs before wave (v) resumes, these levels could act as strong reentry points for buyers.

Momentum indicators, including RSI, show a slight decline, supporting the possibility of short-term consolidation before the next impulsive move.

If TEL breaks below $0.0092, it could invalidate the bullish count, leading to a larger retracement.

Key Levels to Watch

• Immediate Resistance: $0.0127 (1.272 Fibonacci extension).
• Major Resistance: $0.0147 (1.618 Fibonacci extension, potential wave 5 target).
• Immediate Support: $0.0109 (1.0 Fibonacci extension).
• Key Support: $0.0096 (0.786 Fibonacci retracement).
• Critical Support: $0.0085 (0.618 Fibonacci retracement).
• Short-Term Target for Wave (v): Above $0.0147 if momentum sustains.
• Invalidation Zone: Below $0.0092, signaling a deeper downside.

Telcoin remains bullish, but a corrective phase may be needed before the next leg up. If the wave count holds, further upside is likely, with Fibonacci extensions providing clear targets.

However, breaking key support levels could shift the market into a deeper correction.