NEW DELHI (CoinChapter.com) — Changpeng “CZ” Zhao continues to shill the Binance-owned self-custody wallet app Trust Wallet. The promotion from Binance’s CEO helped the wallet’s native token, TWT, prices appreciate by more than 52% on Nov 14.
CZ had previously called on traders to consider self-custody via a Twitter post on Nov 13. Zhao had tagged Trust Wallet in his tweets, which resulted in the TWT token accelerating its rally and nearly doubling its gains over the weekend.
The Binance CEO has been tweeting about the Trust Wallet almost daily, in one tweet advising crypto users to “Trust Wallet your [private] keys, your coins.”
The resulting boost in TWT’s price and trading volume in the last seven days demonstrates that the crypto community is taking Zhao’s suggestion seriously. Furthermore, CZ being the first to warn about FTX’s then-upcoming collapse bolstered the Binance CEO’s suggestion’s credibility.
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With the collapse of the crypto exchange FTX, investors and traders are fleeing exchanges. Hence, it seems that the exchange’s demise has sparked a scramble for self-custody wallets, with Trust Wallet Token reaping the benefits.
TWT Continues Rising Despite Overbought RSI
TWT price jumped 52.3% between intraday low ($1.8) to high ($2.74) levels on Nov 14, charting a new ATH for the token. However, the price action was slightly muted on Nov 15, with the token rising 12.4% between intraday low ($2.17) and high ($2.44) levels before the token pared gains.
The Trust Wallet Token’s recent meteoric rise has pushed TWT’s relative strength index into overbought levels, with a current value of 87.33 on the daily charts. Overbought RSI levels have traditionally forecasted bearish trend reversals.
As a result, traders often consider overbought RSI levels a sell signal. Furthermore, the long upper wick on Nov 13 and Nov 14’s daily candles indicate a strong bearish presence near the higher price levels. Therefore, if the sell-off continues, TWT token price might fall to test support near $2.22.
A marketwide sell-off might force TWT price to support near $1.96 before recovering.
Conversely, if bulls continue buying, the Trust Wallet token price might challenge resistance near $2.43. Furthermore, a break and hold above immediate resistance might help the TWT price rise to $2.68 before downside corrections pare gains.
Meanwhile, it might be possible for the gains from TWT to transfer onto the BNB token, as CZ owns both entities. Thus, the Binance token might start rallying as traders convert their trust in Zhao into profits for Binance.
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