Is Trust Wallet Going to Zero? TWT Price Drops Like a Stone as New Entrant Surpasses $500,000 Milestone

cryptonews.com:

In a tumultuous move for Trust Wallet ($TWT), markets have reacted poorly to a teased 'major update' resulting in a -8% price drop, leading some dejected bag-holders to ask 'Is Trust Wallet going to zero?'.

This comes following an impressive multi-leg +47.9% rally, which was triggered on October 4 by a cryptic teaser tweet that coincided with a reclamation of the 20DM.

Following almost two-weeks of anticipation, this mysterious update has been revealed as a light brand update.

Market reaction has been disappointment, with the revelation catalysing an almost instant -8% sell-off.

As the downside move takes hold, TWT is currently trading at a market price of $1.00 (representing a 24-hour change of -4.62%).

Now on a collision course with the 200DMA (sat at $0.96), price action is likely to push further down to lower support on the short-time frame.

The recent +47.9% rally has led to a significant technical strengthening in chart position, with TWT price pushing up to break through 3 support levels alongside the 20DMA (now sat at $0.92) and 200DMA.

This creates an ironclad lower support level between $0.90 and $1.00 stemming from a near convergence of the moving averages and a localised support level at $0.94.

Meanwhile, shifting attention to Trust Wallet's indicators, the RSI has cooled down rapidly with the -8% drop, although bearish divergence remains at 60.23.

While the MACD contrasts this, remaining at bullish divergence around 0.0103.

Overall, Trust Wallet appears vulnerable to further downside here on the short-time frame, with TWT price likely to fall to converged moving average support.

This leaves Trust Wallet with an upside target at $1.05 (a potential +4.18%).

While downside risk stands at $0.94 (a possible -6.74%).

Trust