The TOMO price is in the process of breaking out from a short-term bullish pattern. However, this seems like the last wave of the current upward move and a corrective period is expected afterward.
The TOMO price has increased by 124% since December 8. However, the rally has begun to lose its power near 8000 satoshis, an area which it has struggled to break out of for the past five days.
Cryptocurrency trader and analyst @Coin_Buster stated that this movement in the TOMO price is the consolidation phase before an upward move. He gave two targets for the price, at 8500 and 9500 satoshis.
In compression mode. Big move incoming.
My analysis and the RR says up.
Let's see if BTC allows this as TOMO usually follows BTC when it dumps.
Targets = the 2 upper yellow lines pic.twitter.com/ZX7hC29k4r
— COIN BUSTER (@Coin_Buster) December 17, 2019
Will the TOMO price reach the outlined targets? Keep reading below in order to find out.
TOMO All-Time High
Since reaching a high of 8276 satoshis on August 24, the TOMO price has been on a downtrend.
This change on December 9, when the price began an upward move. The price reached a high of 10,903 satoshis on December 16, but that was in the form of a long upper wick. Since then, TOMO has struggled to move above the 8000 satoshis resistance area, creating several long upper wicks in the process.
The price has been struggling to break out above this area for the past five days. Also, there is some bearish divergence developing in the RSI, while the MACD has begun to lose strength. However, this is not sufficient in predicting a failed breakout.
There is an ascending support line in place since December. If the price were to decrease, this would be very likely to provide support. The support line is currently at 6500 satoshis.
While the tweet outlines a symmetrical triangle, we believe it is more likely that the price is trading inside an ascending triangle instead. The resistance line of the triangle is at 8000 satoshis, and the price is quickly approaching the end of the pattern, which is projected to be on December 22 at the latest, at which point a decisive move should occur.
If the price moves the entire height of the pattern, it would reach the second target of 9500 satoshis outlined in the tweet. However, due to the strong resistance area, a revisit of the recent highs near 8500 satoshis would be more likely.
To conclude, the TOMO price is trading inside a short-term bullish pattern inside a significant resistance area. We believe it is likely to break out and reach 8500 satoshis and possibly go higher towards 9500 satoshis. Afterward, a corrective movement towards the long-term ascending support line is expected.
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Source: Be In Crypto