Toncoin Price Faces Bearish Double Top Pattern: Will Support at $6 Hold?

by

As an analyst with extensive experience in the crypto market, I’ve closely observed the recent volatility that saw Toncoin surge following the US SEC’s approval of the ETH ETF, only to face a correction driven by Bitcoin. The broader market uncertainty caused most major altcoins to stagnate, with TON trading at $6.4 and attempting to stabilize above the critical support level of $6.

This week, the crypto market took a thrilling journey with numerous ups and downs. The initial jolt came from the US SEC’s green light for the spot Ethereum ETF, igniting a wave of enthusiasm. However, this positive momentum was short-lived as Bitcoin instigated a correction phase, leading to broader market instability. Consequently, most significant altcoins such as TON saw sideways movement. Currently, Toncoin is priced at $6.4, attempting to hold above the critical support level of $6.

Whale Activity Boosts Toncoin Network: Impact on Price Trends

Toncoin Price Faces Bearish Double Top Pattern: Will Support at $6 Hold?

As a crypto investor, I’ve noticed an unfortunate turn of events with Toncoin on May 11th. After hitting a resistance at $7.5, the coin experienced a bearish reversal that sent its price plummeting by around 20%. This decline brought the coin down to a support level at the $6 psychological mark. The fact that we’ve seen two significant reversals from this same resistance within a five-week span is an ominous sign of a potential bearish pattern known as a double top formation.

If the current trend continues, the sellers may cause a decline of approximately 27%, marking the completion of the initial move. Subsequently, they could test the neckline support at around $4.7.

The TON price has been moving sideways recently, hovering around $6.2 due to market instability. A possible turnaround from this level caused a 4% increase in its value within the past two days, reaching $6.45 at present.

According to Joao Wedson’s analysis from CryptoQuant, the TON Network has experienced a substantial increase in large-value transactions this year. In fact, transactions worth over $1 million have been quite prevalent, making up a considerable portion of the network’s total transaction volume.

Surge in High-Value Transactions on #TON Network
“Transactions exceeding $1M USD dominate the on-chain volume of $TON.” – By @joao_wedson
Read more
— CryptoQuant.com (@cryptoquant_com) May 24, 2024

Large transactions are on the rise, indicating a growing appetite from high-net-worth investors and boosting overall network activity. The surge in transaction frequency serves as a clear sign of intensified investor engagement and significantly contributes to the network’s resilience.

As an analyst, I would rephrase that as follows: Should the price break past the $7.5 resistance level in a bullish reversal, my bearish hypothesis would no longer hold true. Instead, I would look to capitalize on potential gains by targeting $8.8 in the ensuing upswing.

Technical Indicator 

  • Relative Strength Index: The daily RSI slope above the midline (50%) indicates a neutral to bullish sentiment.
  • Pivot level: With the Toncoin projecting the potential of entering a price discovery mode, the Traditional pivot level shows the overhead supply pressure at $8.8, followed by $10.

Read More

2024-05-25 21:10