What to expect from Toncoin (TON)?
Toncoin (TON) has dropped by 10% in the last 24 hours, pushing its price below $5 for the first time since May. Currently trading at $4.67, this new low has market participants speculating about the token’s short-term future.
The key question is whether TON will experience a quick recovery or if the recent decline signals further losses ahead.
Toncoin price has been trapped in a correctional phase since August 19. This decline implies that the Telegram-backed cryptocurrency has had more periods of distribution than accumulation.
Furthermore, the daily chart shows that TON had formed a rounding top pattern between August 2 and 26. This pattern is typically considered bearish and signals a potential reversal of the previous uptrend.
From the chart below, after the pattern appears, TON had a neckline at $5.99 that could either prevent a drawdown or accelerate it. However, the bulls could not keep the price above the neckline, leading to a slip below $5.
Currently, bulls are not in a position to assist Toncoin in its recovery. As a result, the price could drop below $4.60, potentially reaching $4.55. However, if buying pressure picks up, this downtrend could reverse, allowing TON’s price to rise toward $5.40.
The key question is whether TON will experience a quick recovery or if the recent decline signals further losses ahead.
Toncoin price has been trapped in a correctional phase since August 19. This decline implies that the Telegram-backed cryptocurrency has had more periods of distribution than accumulation.
Furthermore, the daily chart shows that TON had formed a rounding top pattern between August 2 and 26. This pattern is typically considered bearish and signals a potential reversal of the previous uptrend.
From the chart below, after the pattern appears, TON had a neckline at $5.99 that could either prevent a drawdown or accelerate it. However, the bulls could not keep the price above the neckline, leading to a slip below $5.
Currently, bulls are not in a position to assist Toncoin in its recovery. As a result, the price could drop below $4.60, potentially reaching $4.55. However, if buying pressure picks up, this downtrend could reverse, allowing TON’s price to rise toward $5.40.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.