Alien Worlds Faces Volatility and Bearish Trends
Alien Worlds (TLMUSDT) concluded its trading session close to its lowest point after experiencing significant fluctuations within a 24-hour timeframe. A bearish divergence in the Relative Strength Index (RSI) coupled with decreasing trading volume indicates a diminishing bullish momentum for the cryptocurrency. Currently, the price is testing a crucial support range between 0.00575 and 0.00582, and there are concerns about a potential breakdown below this level.
Market Overview
On July 21, at 12:00 ET, Alien Worlds commenced trading at 0.00605, fluctuating between a high of 0.00609 and a low of 0.00575 over the next day, ultimately closing at 0.00584 on July 22 at the same hour. The total trading volume reached approximately 61.4 million TLM, with a notional turnover of $356,280. The session witnessed a significant decline from the higher price point of 0.00609 to the lower end at 0.00575, reflecting a bearish shift in market sentiment.
Structure & Formations
The price movements observed in the last 24 hours clearly indicate a bearish trend, as TLMUSDT has developed a descending formation following an unsuccessful attempt to rally above the 0.006 mark. A bearish engulfing pattern was identified on the 15-minute chart, specifically between 0.00604 and 0.00593, indicating a shift in market momentum. Furthermore, a doji candlestick formed around 0.00582, signaling indecision and the possibility of a turning point. Key support levels are identified at 0.00575 and 0.00582, while resistance is developing around 0.00606 and 0.00609.
Moving Averages
In the 15-minute chart, both the 20-period and 50-period moving averages are trending downward, reinforcing the prevailing bearish outlook. The price has largely remained below these moving averages throughout the session, suggesting the continuation of the downtrend. Additionally, on the daily chart, the 50-period, 100-period, and 200-period moving averages are also on a downward trajectory, consistent with the overall bearish momentum in the market.
MACD & RSI Analysis
The Moving Average Convergence Divergence (MACD) indicator has turned negative and remains below the signal line, with a bearish crossover identified around 0.00602, confirming a retreat in bullish momentum. The RSI has dipped into oversold territory (below 30) several times, indicating that the asset may be poised for a short-term rebound. However, the bearish divergence between the price movement and RSI suggests that any potential recovery could be fleeting.
Bollinger Bands Indicate Increased Volatility
Bollinger Bands have shown significant expansion, indicating elevated volatility in the market. The price has spent considerable time near or below the lower band, which is consistent with a bearish trend. A contraction of the bands may hint at a possible reversal; however, as of the closing session, the price remains entrenched within a bearish channel.
Volume & Turnover Insights
Trading volume has consistently exceeded average levels throughout the session, especially during the sharp drop from 0.00609 to 0.00575. Notional turnover surged during this decline, affirming the intensity of the sell-off. Nevertheless, volume has since tapered off, suggesting a potential waning of bearish momentum. Both price and turnover appear to be in agreement, with no significant divergences noted.
Fibonacci Retracement Levels
Utilizing Fibonacci retracement levels on the recent 15-minute swing from 0.00609 to 0.00575 reveals that the 38.2% retracement level is positioned at 0.00595, while the 61.8% level stands at 0.00585. The current close at approximately 0.00584 aligns with the 61.8% level, indicating a potential support area or zone for consolidation. On the daily chart, Fibonacci levels from a broader swing could provide additional insights into possible reversal points.
In the next 24 hours, TLMUSDT may continue to stabilize within the range of 0.00575 to 0.00582. A drop below 0.00575 could signal an extension of the bearish trend. Investors are advised to monitor for a possible bounce from the identified Fibonacci levels or a breakdown below critical support, while also managing risks amid anticipated market volatility.
