Deep Dive
1. Technical Rejection at Key Resistance (Bearish Impact)
Overview: TWT failed to sustain momentum from its July 20 breakout above a multi-month descending trendline. Despite briefly surpassing $0.83 in July, it now trades at $0.759, below critical Fibonacci resistance at $0.8083 (38.2% retracement). The 7-day RSI (36.51) signals oversold conditions, but the MACD histogram (-0.0019664) confirms bearish momentum.
What this means: Traders exited positions after the price failed to breach $0.8379 resistance, a level highlighted in July technical analysis. The breakdown below the 30-day SMA ($0.7763) added downward pressure.
What to watch: A close above $0.7763 (30-day SMA) could signal recovery, while a drop below $0.745 (78.6% Fibonacci) may accelerate losses.
2. Reduced Collateral Utility on Binance (Bearish Impact)
Overview: Binance lowered TWT’s collateral ratio from 60% to 45% in June 2025 for margin trading, reducing its appeal for leveraged positions.
What this means: Margin traders now get less borrowing power when using TWT as collateral, decreasing buy-side demand. This adjustment aligns with Binance’s broader risk management strategy but weakens TWT’s utility in high-leverage environments.
3. Broader Market Risk-Off Sentiment (Mixed Impact)
Overview: Crypto markets fell 2.18% in 24h amid rising derivatives activity (+57% volume) and neutral sentiment. TWT’s low turnover ratio (3.38%) indicates thin liquidity, amplifying volatility.
What this means: Traders favored Bitcoin (57.77% dominance) over altcoins like TWT during the pullback. However, TWT’s 60-day gain of 11.74% suggests mid-term resilience despite short-term headwinds.
Conclusion
TWT’s dip reflects technical profit-taking post-breakout, reduced margin utility, and cautious market positioning. While oversold conditions hint at a potential rebound, weak liquidity and altcoin rotation risks persist.
Key watch: Can TWT defend $0.745 support amid rising open interest in crypto derivatives? Monitor Trust Wallet’s upcoming RWA partnership updates for fundamental catalysts.