As an experienced analyst, I have closely observed the price movements of Toncoin (TON) over the past few days. The recent rally of nearly 15% and trading above the significant resistance level of $6.50 is a noteworthy development for TON investors. However, based on my technical analysis, I believe that Toncoin might experience a correction in the near term.
The price of TON surged by approximately 15%, reaching beyond the barrier at $6.50. However, Toncoin exhibits early indications of trend fatigue and may experience a pullback.
- Toncoin jumped above the $6.20 and $6.50 resistance levels.
The price is now trading above $6.50 and the 100-hourly Simple Moving Average.
There is a key parabolic curve forming with support at $6.80 on the hourly chart of the TON/USD pair (data source from Kraken).
The pair could start a downside correction if it declines below $6.80 and the $6.60.
TON Price Reaches $7
As a crypto investor, I’ve noticed an impressive surge in TON‘s price recently. It bounced back strongly from the support level at $5.60 and broke through the resistance at $6.20 with ease. The price hike brought about a 15% gain within a single day, making TON a top performer compared to Bitcoin and Ethereum in my portfolio.
The price of Toncoin hovered around the $7 mark. Reaching a peak at $6.93, it has since consolidated its advance. Currently, Toncoin is trading in the vicinity of $6.80. Its value lies significantly above the 100-hour Simple Moving Average. Moreover, an essential parabolic curve is emerging on the hourly chart of TON/USD pair, with a strong foundation at $6.80.
Near $6.92, there’s a close encounter with resistance. At around $7.00 lies the initial hurdle to surmount. Overcoming this barrier might lead to a notable price surge.
If the price holds above the $7.20 barrier, bulls may push the market up towards the next resistance at $7.55. Should prices continue to climb, they could potentially reach the $8.00 resistance.
Downside Correction In Toncoin?
If Toncoin’s price is unable to surpass the $6.90 resistance point, there’s a risk that the coin may initiate a decline. The initial floor for this potential drop lies around the $6.80 mark and the descending trendline, beneath which the value could probe the 23.6% Fibonacci retracement level derived from the upward trajectory between the $5.61 bottom and $6.93 peak.
As an analyst, I would interpret the situation as follows: The next significant resistance lies at $6.25 or the 50% Fibonacci retracement level of the price rally from the $5.61 swing low to the $6.93 high. Should the price breach this support and close below it, there is a risk that it could pick up momentum and head lower. In such an eventuality, the price may revisit the $6.00 support area.
Technical Indicators
Hourly MACD – The MACD for TON/USD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for TON/USD is now above the 70 level.
Major Support Levels – $6.80 and $6.60.
Major Resistance Levels – $6.90 and $7.00.
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2024-05-10 12:04