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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.