Analyzing Telcoin's Future Following Banking Charter Approval: Continuing the Rally or a Whales' Fakeout?

Telcoin recently experienced a significant price surge due to the approval of its banking charter from Nebraska, which has increased market demand and led to notable trading activity. However, ongoing caution among whale investors and uncertain market conditions raise questions about the sustainability of these gains.

Key Takeaways

Price Surge: TEL experienced a rise after receiving a Nebraska banking charter, leading to increased demand and bullish sentiment in the short term.
Market Sentiment: Despite elevated trading volumes, whale investors remain cautious, posing risks to maintaining prices above $0.00746.
Current Status: TEL managed to hold the $0.005 support level and peaked at $0.0069 before stabilizing around $0.00668, marking a daily increase of 30.88%.
Trading Volume: Trading volume increased by 68.7% to $14 million, and the market cap rose by 31% to a monthly high of $611 million, highlighting significant market activity.

Telcoin [TEL]Telcoin [TEL]

Telcoin Secures Banking Charter in Nebraska

Telcoin has successfully obtained a banking charter from the Nebraska Department of Banking and Finance, empowering the company to provide digital-asset and stablecoin services under state regulations. This new charter enables Telcoin to offer traditional banking services, such as deposits and loans, using its eUSD stablecoin, accessible through decentralized finance applications. This accomplishment follows similar trust-charter initiatives by notable companies like Coinbase, Circle, Ripple, and Paxos.

Traders Join the Rally

In the wake of the charter announcement, a shift towards the Futures market is noticeable among traders. As reported by CoinGlass, Derivatives Volume surged by 15.89% to $6.85 million, while Open Interest increased by 10.68%, reaching an all-time high of $1.13 million.

Tel Derivatives data analysis

This spike indicates heightened involvement and capital influx into the futures market. The Long/Short Ratio for TEL reached 1.0052, suggesting a slightly stronger inclination toward long positions among traders. Typically, when longs dominate, there are expectations for continued upward movement.

Spot Market Whales Exercise Caution

While optimism is rising in the Futures market, participants in the Spot market appear to be more reserved. CryptoQuant's Spot Average Order Size has shown that large whale orders have been active for seven consecutive days.

Telcoin spot average order size

Despite this activity, the Spot Taker CVD indicates a prevailing selling pressure during the same period. AMBCrypto's analysis reveals that whales increased their selling activity, with this metric remaining negative over the past week and hitting a high point, indicating intensified selling pressure.

Telcoin spot taker cvd

This situation underscores that, despite the enthusiasm to buy, whales are not yet fully committing to a bullish approach, introducing a potential risk to the recent market advancements.

Potential for Further TEL Growth

After the banking charter approval, Telcoin's demand surged, enabling it to extend its rally. The Directional Movement Index (DMI) has confirmed a bullish trend, with the +DI remaining above the –DI since their crossover four days ago.

TEL DMI & FBB

This momentum coincides with a push toward the upper band of the Fibonacci Bollinger Bands at $0.00746. A successful breakout above this level may pave the way for a rise towards $0.008. Conversely, failing to maintain levels at the upper band could pull TEL back toward mid-band support, landing near $0.0047.