After a remarkable 1,600% value increase throughout 2021, the TWT token faced a challenging start to the year. 2023 proved to be a tumultuous journey for Trust Wallet, primarily due to regulatory uncertainties surrounding Binance.
In April, Trust Wallet exposed a vulnerability in addresses created between November 14 and 23, resulting in a loss of $170,000 in customer funds. While this loss was relatively small compared to the total assets stored, it had a detrimental impact on TWT’s price and eroded trust in the Trust Wallet platform.
As an official Binance wallet, Trust Wallet has maintained a close association with the largest cryptocurrency exchange. However, in June, the SEC initiated legal action against Binance, alleging mishandling of user funds.
The accusations revolve around Binance’s alleged transfer of these funds to corporate accounts controlled by its CEO, Changpeng Zhao. This lawsuit was part of 13 legal actions the SEC and the U.S. Commodity Futures Trading Commission (CFTC) jointly filed, revealing a troubling pattern of deceptive practices.
Nevertheless, there are encouraging signs for the TWT price as we enter October, with a notable gain of approximately 28%. Currently valued at $0.94, it stands just 6 cents away from the coveted $1 mark. The question now is whether it can reach and surpass the $1 milestone in the near future.
TWT reached its all-time high on December 12, 2022, soaring to $2.77. However, it experienced a decline thereafter, dropping to $1.20 by December 27, only to recover to $1.86 on January 31.
In February, a sustained downtrend began, culminating in a significant drop on June 10, when TWT plummeted to $0.72, marking the lowest point in this bear cycle.
Following this downturn, a period of consolidation ensued, pushing the price back up to $0.98 on June 22, a level revisited on August 2 and 15. This zone eventually solidified as horizontal resistance, ultimately leading to a retreat to its horizontal support on September 11.
Recent developments have seen a rebound, with a remarkable 36% increase measured from the September 11 low of $0.72 to its recent peak of $0.98. Today, on September 6, the price experienced a minor retracement, currently resting at $0.9315 but still maintaining an overall upward trajectory.
The daily chart’s RSI indicator reached 81% yesterday, entering the overbought zone, suggesting possible overextension. The question now is whether this could trigger a downturn, leading the price back to its horizontal support, or if it has the potential to break above $1.
On closer examination of the 4-hour chart, it becomes apparent that we may have witnessed the initial impulse wave to the upside beginning on September 11. This observation aligns with the previous descending structure from the all-time high, demonstrating the completion of a five-wave move.
If this holds, we have already witnessed the development of the initial three waves, with wave 3 encountering notable resistance. The daily RSI also suggests a potential pullback, a notion reinforced by the wave structure, indicating a short-term downturn.
During this anticipated downturn, we’ll closely assess the likelihood of a price breakout above the $1 threshold. A crucial factor to watch will be whether it maintains support above $0.82 and initiates a subsequent upward movement, signaling the establishment of higher support levels and the potential for an imminent breakout.
The current ascent from October appears to have reached its peak, briefly touching the $1 mark, which presented strong resistance at the time but may not do so in the future.
The target price for wave 5 sits just below $1.20, which represents the next significant resistance point and a probable endpoint for this uptrend starting from September 11. If this scenario materializes, TWT’s price movement could indicate a broader recovery, but we’ll delve deeper into this possibility once it gains validation.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability, and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.