The world's first ESG blockchain, Telos (TLOS) broke out of its summer consolidation channel in the first half of August to reclaim it's Spring trading points. After an introduction on KuCoin spike price to the upside, printing a wick that pinned $0.59277, price shrank back to .133 before galling into a bearish consolidation pattern that took price down to the .125 to .150 range through most of Summer. Ahead of the introduction of its Ethereum Virtual Machine (EVM), the cryptocurrency broke out on rising volumes in August. 

August 4-6 would provide the catalyst for the break out out of what was a declining wedge. 

I lined the Fibonacci retrace chart up with the tops of the candles from the KuCoin listing rally, because frankly, its much more helpful than the alternative. Note the uptick in volume as we head into August. Rising volume leads to break outs, not break downs, when price is stuck in a wedge. On the 1D chart the uptick in volume corresponds with the uptick in price. 

Now, let's get down on the 1H, and let's go from August 1 on:

I've highlighted the four places where price moves but I want you to notice the volume is trending up, and significantly so. 

On a fundamental basis, when you take a market with some liquidity, a low market cap, a relatively low number of total maximum coin supply, and you build a quality product on top of that, which has numerous competitive advantages in the market, price can move very, very quickly. Especially when the market begins to take notice. 

Back to the technical:

The RSI on the 1D shows that TLOS is heading into overbought territory at the moment sitting at 77.59, although, in a bull market, we should adjust our understanding of overbought to be closer to a reading of 90+. However, we should certainly be on the lookout for a retrace considering the sharp rise. After the KuCoin listing, TLOS would go on to retrace almost the entire rally but, in the process, identified a solid line of support at .125 with resistance at .15. We would expect a retrace to test support at .199 and confirm the .200 price point with further downside to .18 and then .15 should support fail there.

On the upside, in the past we've seen support at .21 with support at .18. Cracking the .25 psychological barrier could send TLOS looking to reclaim the wicks of the KuCoin listing between .36 and .59. However, a brief cool down and consolidation at this point could be healthy long-term as price has now rallied roughly 50% in August. 

Of course, glancing at the short-term, we can't help but notice that a fifth push to the upside seems imminent. 

This is likely the market beginning to price in the Telos EVM, which is undergoing its final audits before full release, as large segments of the crypto market at 2.5% to 6.5% in the red today, TLOS is powering through at +18.5% in intraday trading. Telos promises decentralized governance, developing a safe, social refuge on block chain, and is committed to the goal of carbon negativity. ESG investing is increasingly being considered a powerful way to affect positive change in our society and is increasingly viewed as a key to the future. Telos is the first ESG blockchain.

You can find research I've done on the fundamentals of Telos which delves into the environmental, while I have also previously examined the Telos user experience. 

Happy trading, folks!