MetalPay (MTL) is a payment system that enables users to transfer fiat or cryptocurrency peer to peer, using just a phone number. It is similar to the PayPal and is available to the US users. At the moment it is far from reaching mass adoption although MetalPay team is making steps to increase the use of MTL token.
Yesterday it was announced that Metal will be giving away $18 Million, equivalent in the MTL tokens, to their users. This is a 40% of the total token supply, which will be distributed through the MTL proof of processed payments mechanism.
The reaction to this announcement was a 14% drop in price against the Bitcoin. The price dropped from 10,500, down to 9,000 satoshis, where it rejected the 88.6% Fibonacci support. But, at the same time, this fall in price could simply be the trend following of the Bitcoin, which today fell by 4.4%.
After the support was rejected cleanly, a correctional move up started. MTL/BTC gained back 11%, reaching today's high at 10,000 psychological price. Such a precise bounce off the Fibonacci support level might imply that there is more room for upside correction. Metal token can be heading towards the key resistance at 10,500 satoshis. This is the price where most trade volume has occurred over the past 3 months and also the level where price broke below the uptrend trendline.
The key resistance should be an important price level to watch in the near future. If MTL will rejected it, range trading or a downtrend continuation can be expected. But the daily break and close above might be interpreted as the first signal of the beginning of the bullish trend or at least a stronger correction to the upside.
On the downside, daily break and close below the 9k satoshis level will invite more short-term sellers, which are likely to push the price down to 8330 satoshis support or even lower.
Support:
- 0.000090
- 0.000083
Resistance:
- 0.000105
- 0.000114
- 0.000121
Trade closed: target reached: Upside target reached
Disclaimer: This report is originally posted on TradingView and is for educational and informational purpose only. This post does not constitute an endorsement, recommendation, or offer to sell. Please be guided accordingly.
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