TokenFi Price Forecast: TOKEN consolidation could lead to 25% breakout rally soon
- TokenFi price has formed a double bottom setup, forecasting a 28% move to the upside.
- Investors can expect a minimum of 23% rally after clearing the $0.0395 hurdle.
- A breakdown of the $0.0286 support level will invalidate the bullish thesis.
TokenFi (TOKEN) price has been moving sideways as it trades below a key resistance level. This barrier is critical in determining where TOKEN heads next. A breakout could lead to handsome, double-digit gains for holders. Rejection, however, could send the altcoin sliding lower.
Also read: Crypto AI tokens outperform several altcoins with price rally: TAO, AKT, PRIME, AGIX
TokenFi price at crossroads
TokenFi price action over the last six weeks has created a double bottom pattern. This setup contains two distinctive troughs formed below a horizontal resistance level known as “the neckline”. This setup forms after a steep correction. It represents a bottom formation and is a symptom of trend reversal.
This technical formation forecasts a 28% rally to $0.0413, obtained by adding the distance between the peak and the second trough and adding it to the breakout point at the neckline of $0.0320. TokenFi price needs to produce a twelve-hour candlestick close above the $0.0320 neckline resistance level, however, to validate the setup and kickstart an upswing.
It is worth noting, however, that TokenFi price could retrace 8% lower to retest the $0.0286 support level before breaking out. This move would be a great opportunity for sidelined buyers to accumulate TOKEN.
Also read: XRP price climbs to $0.5590 with surge in on-chain activity and Bitcoin's run to $52,500
TOKEN/USDT 12-hour chart
On the other hand, if the aforementioned retracement to $0.0286 fails to slowdown, it could signify a spike in selling pressure, perhaps as a result of buyers not stepping up. Either way, if TokenFi price produces a twelve-hour candlestick close below the $0.0286 support level, it will invalidate the bullish thesis by producing a lower low.
In such a case, TOKEN could slide 27% and tag the range low at $0.0207. This crash is not unheard of since the last time TokenFi price faced rejection around $0.0320, it suffered a 30% correction.
Read more: Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Altcoins follow as BTC shows no signs of stopping
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
