On January 28, the TOMO price created a bearish sentiment by decreasing below a significant support level. However, it reclaimed this level after three days and has been moving upwards since.
TomoChain Price Highlights
- TOMO broke out above a descending resistance line.
- There is support at 5100 satoshis.
- There is resistance at 6700 satoshis.
- The price has possibly begun the fifth and final wave of an Elliott formation.
Trader @TraderLenny outlined the TOMO price stating that it has reclaimed a significant support level after losing it for a short period of time. This has caused him to turn bullish on TOMO, believing that the price will continue to increase in the future.
Successfully reclaimed the important 5100 sats daily S/R level after briefly losing it.
Similar to many other reclaims on other alts, this is now once again starting to look quite bullish. pic.twitter.com/I0sR2Adws8
— TraderLenny (@TraderLenny1) February 3, 2020
Let’s take a closer look at the TOMO price and attempt to determine where is it heading to next.
TOMO Reclaim
SponsoredThe important level that was reclaimed is found at 5100 satoshis. The level has intermittently acted as support and resistance since August 2019.
The price fell below this level on January 28, possibly signaling that the price is heading downwards. However, it reclaimed the level within the next few days. It is expected that the 5100 satoshi area will act as support from now on.
Another bullish development comes from the RSI reading, which moved above 50 at the same time the price reclaimed this level — possibly signaling that TOMO is in an upward trend.
Descending Resistance Line
In the shorter-term, we can see that the price also broke out above a descending resistance line. It is now in the process of validating it as support, along with the 5100 satoshi area.
Afterward, we would expect the price to continue moving upwards towards the next resistance area — which is found at 6700 satoshis.
Long-Term Movement
As for the long-term movement, it is possible that the recent low was the end of the fourth wave and we have just entered the fifth and final wave of this Elliott formation. While this movement is not certain, the fact that the bottom of the fourth and the top of the first wave are at an almost identical level gives credence to this possibility.
Using a Fib retracement from the December 2019 high, a possible target for the end of this move would be found at 17,000 satoshis. However, this is a long-term target and we would not expect TOMO to reach it in February.
To conclude, the TOMO price has reclaimed a significant resistance area and is in the process of validating it as support. We believe this is the beginning of a longer-term upward move.
Midnight