Trust Wallet Token’s Rally Hits a Wall: Profit-Taking Jumps 1,600%
Trust Wallet Token (TWT) surged to $1.33 earlier than correcting and is now buying and selling close to $1.10. It remains to be up 37% within the final 24 hours. The TWT worth rally was broadly tied to a contemporary tweet from Binance founder CZ, however the actual driver wasn’t simply social hype.
Technicals present the breakout was primed upfront. Once targets had been met, merchants shortly booked income. Now, the indicators level to cooling momentum and rising promoting strain.
A Breakout Target Met, Followed by Heavy Profit-Taking
On the 2-day chart, the TWT price had been forming an inverse head-and-shoulders sample. It is a basic setup that always alerts a reversal, and that too with a right away worth goal.
The breakout was already in play earlier than CZ’s quote re-tweet. The tweet merely accelerated the transfer and despatched costs straight into the sample’s projected goal. Once that concentrate on was hit above $1.17 (the unique goal), sensible merchants supposedly started cashing out.
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The outcome was a sharp wave of profit-taking. Exchange web flows flipped from –177,980 TWT on September 17 to +2.84 million simply two days later — a 1,600% leap in tokens flowing onto exchanges. Such a surge alerts that holders rushed to lock in good points, creating heavy near-term promote strain.
Normally, whale accumulation typically offsets retail promoting. But on this case, the alternative has performed out. Wallets holding 10 million–100 million TWT have been trimming steadily since early September, reducing their stash from 248.9 million to 241.4 million. That’s a dump of virtually $8.23 million at present costs.
These whales even booked income with one other sell-burst taking place over the previous 24 hours.
That drop exhibits giant holders have been decreasing publicity even earlier than retail joined in and at the moment are reserving income too. This leaves little help to soak up the brand new promoting strain.
Bearish Divergence Keeps the TWT Price Correction Risks High
Despite the short-term pleasure, long-term alerts stay cautious. Since December 2024, TWT’s price has made decrease highs whereas the Relative Strength Index (RSI) has made larger highs — a hidden bearish divergence. RSI is a momentum indicator that tracks whether or not shopping for or promoting strain is stronger.
This means that momentum has not been sufficient to push costs into a true reversal, conserving the broader downtrend intact.
The worth chart highlights the danger zones. Support sits at $1.00, adopted by $0.84 and $0.71. A break below $0.71 might expose TWT to deeper losses towards $0.63. On the upside, solely a day by day shut above $1.42 — and ideally $1.63 — would invalidate the bearish setup and get the market to place its belief again on the TWT worth rally.
For now, the Trust Wallet Token (TWT) worth rally seems to be like a transfer that met its goal and sparked sharp profit-taking, not the beginning of a sustainable uptrend. Holding above $1.00 might be key to avoiding a deeper correction.
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