While the broad cryptocurrency market is experiencing FTX-driven headwinds, Trust Wallet Token (TWT) is not only rallying, but it has just made a new all-time high. The cryptocurrency has been following an interesting pattern that can give us further insight into what may lie ahead.
Since its inception, TWT's price has been repeating a base-rally-drop pattern, which represents special price zones on the price where the token is accumulated. Each base zone was revisited during the next cycle to support the next demand zone or accumulation zone.
If history repeats itself, the TWT price can pull back near $1.20 at the last base zone. If the current weekly candle closes as it is, then we're going to have a massive rejection candle or a pin bar that is often a reversal signal.
Broadening Wedge Pattern
The whole TWT long-term trend can be "enveloped" within a broadening wedge pattern. This pattern is characterized by the ascending support and resistance trendlines that are broadening over time.
While the TWT price has been expanding on the upside, the move was orderly within the broadening wedge pattern.
Looking forward: The first support area comes near the $1.52 level, which is around two previous key TWT swing highs. However, if the current rally extends higher, it may face a strong resistance near the top of the broadening wedge pattern, which comes around the $3.00 psychological level.