Trust Wallet Token 's rally hits a roadblock: Profit-taking surges 1,600%

Trust Wallet Token (TWT) rose to $1.33 before correcting and is currently trading near $1.10. It is still up 37% over the past 24 hours. The TWT surge is believed to be related to a new tweet from Binance founder CZ, but the real driver is more than just social media hype.

Technical indicators suggest that the breakout was in the works. As targets were reached, traders quickly booked profits. Currently, the signs are that momentum is fading and selling pressure is increasing.

Breakout target achieved, followed by strong profit taking

On the 2-day chart, TWT price has formed an inverted Vai and shoulders pattern. This is a classic setup that usually signals a reversal, and also has an immediate price target.

The breakout was already underway before CZ retweeted. The tweet simply accelerated the move and brought the price right into the pattern’s intended target. Once that target was reached above $1.17 (the initial target), smart traders are said to have started taking profits.

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The result was a strong wave of profit-taking. Net exchange inflows went from -177,980 TWT on September 17 to +2.84 million just two days later — a 1,600% increase in the number of Token flowing into exchanges. This increase suggests that investors were quick to take profits, creating strong selling pressure in the short term.

Typically, whale accumulation offsets retail selling. But in this case, the opposite happened. Wallets holding 10 million–100 million TWT have been steadily declining since the beginning of September, falling from 248.9 million to 241.4 million. That’s a sale of nearly $8.23 million at current prices.

These whales even took profits with another sell that took place in the last 24 hours.

This shows that large investors have been reducing their exposure even before retail investors joined in and are now also taking profits. This leaves little support to absorb the new selling pressure.

Bearish divergence keeps TWT price correction risk high

Despite the short-term excitement, the long-term signals remain cautious. Since December 2024, the price of TWT has been making lower highs while the Relative Strength Index (RSI) has been making higher highs — a hidden bearish divergence. The RSI is a momentum indicator that tracks XEM buying or selling pressure is stronger.

This suggests that momentum is not enough to push the price into a real reversal, keeping the broader downtrend intact.

The price chart highlights the risk zones. Support lies at $1.00, followed by $0.84 and $0.71. A break below $0.71 could see TWT suffer deeper losses towards $0.63. On the upside, only a daily close above $1.42 — and ideally $1.63 — could invalidate the bearish setup and give the market renewed confidence in the TWT rally.

Currently, the rally in Trust Wallet Token (TWT) looks like a move that has reached its target and triggered strong profit-taking, not the start of a sustainable uptrend. Holding above $1.00 will be key to avoiding a deeper correction.