Tokenize Xchange (TKX) Breaks Resistance After Reaching Support

Key Takeaways

• Bullish breakout confirmation
• Wave structure aligns with Fibonacci targets
• RSI signals moderate momentum recovery

Tokenize Xchange (TKX) has seen a notable price recovery following a substantial corrective phase.

The daily chart shows a completed five-wave cycle retracing to key Fibonacci support before beginning a potential new impulsive wave.

In contrast, the 4-hour chart signals the early stages of a new bullish wave.

TKX Price Analysis

The daily TKX chart illustrates a completed five-wave impulse structure, peaking at $51 on Jan. 3, before undergoing a substantial retracement.

The correction brought prices down to around 19$, below the 0.618 Fibonacci retracement level at $24, a zone where buyers showed significant interest.

Forming a descending triangle within this retracement phase suggests the potential completion of the corrective wave, as price action now looks to establish a reversal.

The price is currently battling resistance at the 0.5 Fibonacci level of $29.06. A successful breakout above this level would confirm a shift in momentum, setting sights on the next key resistance at $34.10 (0.382 Fibonacci retracement). 

This level previously acted as a pivot zone during the decline, making it a significant test for bullish continuation.

The RSI indicator remains in neutral territory, gradually recovering from oversold conditions. This suggests that bulls will need stronger momentum to push through major resistance levels while selling pressure has subsided.

Failing to break above $34.10 could result in price consolidating or retesting lower support zones.

TKX Price Prediction

The 4-hour chart provides a clearer picture of TKX’s current wave structure. A bullish five-wave sequence unfolds, with wave (iii) currently developing.

This wave is typically the strongest in Elliott Wave theory, implying that further upside movement is likely before a corrective wave (iv) pullback. 

If wave (iii) extends fully, TKX could rally toward the $34.10 level, which aligns with both Fibonacci retracement resistance and the structure of the previous high.

However, wave (iv) would be expected to bring a minor correction, likely retracing toward the $29.06-$30.00 zone before the final wave (v) pushes higher.

In an alternative scenario, should TKX fail to sustain its current uptrend, wave (iv) could extend deeper, potentially testing $27-$28 as support before resuming its bullish structure.

RSI levels on the 4-hour chart indicate a strong recovery but have not yet reached overbought conditions, leaving room for further appreciation before a correction.

Key Levels to Watch

• Immediate Resistance: $34.10 (0.382 Fibonacci retracement).
• Key Support: $29.06 (0.5 Fibonacci retracement).
• Critical Support: $24.02 (0.618 Fibonacci retracement).
• Short-Term Target for Wave (v): Above $40 if momentum sustains.
• Invalidation Zone: Below $24, signaling a deeper correction.