Telcoin (TEL) Price Struggles at Key Resistance as Bulls Eye Breakout: September Analysis

Telcoin (TEL) has shown signs of recovery since mid-August, with the token currently trading within a defined descending triangle, a pattern generally considered to be a continuation. The price, which currently sits at $0.00535, has gained about 3.5% in the past 24 hours. However, overhead resistance remains a major hurdle for bulls hoping to confirm a trend reversal.

Recent Price Action

Since mid-August, TEL has attempted multiple rebounds off the $0.0046–$0.0047 support zone, a level that has provided a consistent floor during the recent downtrend. Each recovery attempt, however, has been capped by the descending trendline resistance stretching from late July. The price is now testing this upper boundary once again, coinciding with the 200-day moving average around $0.00526—a level often regarded as a key barometer of long-term sentiment.

Encouragingly for bulls, TEL has managed to climb back above its cluster of short- to mid-term exponential moving averages (20, 50, 100, and 200 EMA), which are currently converging near the $0.0051–$0.0052 range. This alignment suggests growing momentum and a potential shift in market structure if buying pressure sustains.

Bullish Scenario

If TEL manages to decisively break above the upper trendline of the descending triangle and hold above the 200-day MA, upside momentum could accelerate. The immediate bullish target lies near $0.006, where sellers previously overwhelmed buyers in late August. A successful push beyond that zone could open the door toward the $0.00748 level, which marks a major resistance zone from earlier this year.

Momentum indicators, while not displayed on the chart, would likely confirm this outlook if volume expands on the breakout. Such a move could signal the start of a more sustainable reversal from the prolonged downtrend that has dominated TEL’s price action since the spring.

Bearish Scenario

On the flip side, failure to clear the descending resistance line and sustain above the 200-day moving average could expose TEL to renewed selling pressure. The first area of support rests at $0.005, just below the EMA cluster. A breakdown beneath this region could send TEL back toward $0.0047, where price has bounced repeatedly since August.

If bearish momentum strengthens further, the descending channel’s lower boundary near $0.0041 could come into play. A move to this level would not only erase recent gains but also reaffirm the broader downtrend, signaling that bulls lack the conviction to stage a meaningful recovery.

Outlook

As it stands, the TEL price is at a critical juncture. The convergence of long-term moving averages and descending resistance suggests that the next breakout, or rejection, will set the tone for the coming weeks. Traders are advised to watch for a decisive close above $0.0055 as confirmation of bullish intent, while a rejection and drop below $0.005 could indicate that bears remain in control.

In the short term, Telcoin’s performance hinges on whether bulls can muster the strength to overcome entrenched resistance. A successful breakout could spark optimism for a broader trend reversal, while failure would likely extend the token’s choppy consolidation within its downtrend.