Crypto deepdive - Telcoin ($Tel)

Overview

This is one of a series of posts taking a deep-dive look at crypto assets. Each post will be updated on a weekly/fortnightly basis depending on what is happening in the market.

Some of these posts (like this one) will be free to access to give people an idea of what content is on offer but in the main these post are for subscribers.

This particular post takes an in-depth look at $Tel, covering:

• what it is

• monthly price action

• weekly price action

• daily price action

• what the influencers are saying about it

What it is

$Tel’s principal function is in the area of remittances, seeking to enable people to send money internationally quickly and at low cost. It has a wider ambition of banking the unbanked by enabling remittances to be processed on mobile networks without the need for a bank account. It has also built a decentralised crypto exchange for a limited number of crypto coins. It is active in the defi space, incentivising a number of liquidity pools for key coin pairings. It has gradually been building out its infrastructure with the latest development being the development of the Telecoin Association which envisages a decentralised platform supporting mobile network operates to build apps on the tel network. It is ambitious in scale but a recent hack of the telcoin exchange has shaken confidence, and consequently price.

Monthly price action

$Tel went on a massive run in the crypto bullmarket of 2021 but just as quickly crashed back down to pre-bull market levels through the second half of 2021 and into 2022. Price has been tracking sideways between the $0.001 and $0.003 levels pretty much ever since.

In the medium to long-term, if $tel can recapture its previous strength there is a huge amount of potential upside. Once it breaks the local $0.003 level the first key resistance comes between $0.0075 and $0.01 - about a 600% gain from current princes. The mid-level pivot, which acted as support and then quickly resistance in the second half of 2022 is at about the $0.02 level, 1500% from the current price. And then the previous all time high itself at about $0.065 is over 5000% away from current price.

I have a soft spot for $tel, having invested in it in my early crypto days and have ridden some wild rides up and down the price axis. Currently, my view is that it is an interesting liquidity pool play (the returns are pretty good) and a good choice for an investment moon bag (a small bag of $tel could quickly turn into a big one) but I would struggle to recommend it for investment of any significant amount of funds given its inability to hold value.

Weekly price action

On the weekly timeframe there are some clean levels to work with. Key support, dating back to the previous cycle sits just below the $0.001 level, and currently looks a solid bet to support any future dips. Local resistance is at the $0.0015 level and once that is broken there is a confluence of resistance at the $0.002 level and a price trendline. From there, the big flip level is $0.003, which was a previous key breakout range in 2021.

Daily price action

In terms of daily price action, the impact on price of the telcoin wallet hack is clear, sending price back to key support levels. The bounce back has been slow, but bullish divergence (price decreasing as RSI increases) has been building. Horizontal and diagonal resistances are plotted out on the chart with price still 100% away from the bear market resistance at $0.003.

What the influencers say

@timmonaghan16 on twitter notes the moving average crossover currently underway.

@telcoin_juggler on twitter has an interesting channel perspective, which shows a route back to, and beyond, the current all time high - with take-off just happening to coincide with the BTC halving event.