As an experienced analyst, I closely monitor the cryptocurrency market and have observed that Toncoin (TON), the native currency of the Toncoin network, has been underperforming since last week despite the broader crypto market recovery. The TON price reverted sharply from the $7.5 resistance level, plunging 17% to currently trade at $6.5.
The Toncoin network’s native cryptocurrency, TON, has underperformed the broader crypto market for the past week. While many major altcoins experienced significant gains following Bitcoin‘s price surge above $65,000, TON’s price saw a sharp reversal at the $7.5 resistance. This bearish trend caused the asset to drop by approximately 17%, now trading around $6.5. Is it possible that this correction will continue, or will Bitcoin’s recovery shift the momentum?
Toncoin Price Forecast: Key Support Levels to Watch
From the beginning of May until its midpoint, Toncoin experienced a robust uptrend. The price escalated from $4.6 to reach a peak of $7.5, resulting in a substantial 63% price increase. Yet, the bullish momentum encountered significant resistance at the all-time high mark of $7.5.
At the resistance level, the sudden surge in available TON caused its price to drop sharply down to $6.5. A closer examination of the daily chart revealed this price decrease as the emergence of a double-top formation. This pattern is frequently spotted near market peaks, signaling an increasing supply that can lead to a substantial decline.
If the downward trend in Toncoin’s price continues, it may break through the $6.2 support level, making it easier for sellers to push the price lower and potentially initiate a more extended correction. After this breakdown, Toncoin could fall by approximately 24%, reaching the neckline support at around $4.7, thereby completing the formation of this bearish pattern.
As a crypto investor, I believe that a breakout beneath the neckline of a chart pattern signifies a shift in market sentiment. This event could potentially lead to a significant decline in cryptocurrency prices.
Contrarily, the TON price has risen by 4% today, fueled by Bitcoin’s stability above $66,000. If the recent decline was intended to strengthen the ongoing recovery, then Toncoin should exhibit a turnaround sign around $6.2.
A strong bounce back from this level of support would disprove the bearish outlook and encourage bulls to push for new heights beyond $7.67.
Technical Indicator
- Relative Strength Index: The formation of new lower highs (bearish divergence) in the daily RSI slope accentuates the rising supply pressure at the top.
- Exponential Moving Average: A bullish alignment between the daily EMAs (20, 50, 100, and 200) indicates the broader trend remains bullish.
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2024-05-20 22:37