The past 24 hours have seen TON through another downturn following a sharp drop under $6. While it appears highly bearish daily, it may roll back to the yearly low if the price breaks below its five-month support.
After witnessing multiple rejections at around $7 in the last two weeks of recovery, Toncoin initiated a drop yesterday and fell sharply to a low of $5.5. This low quickly got rejected but it has resumed selling and is now looking poise for a bigger drop in the daily timeframe.
The crucial $4.6 support that has been preventing bearish pressure for almost five months might pose to threat again if the supply level continues to increase on the monthly scale. A major break below this support could activate a huge drop to the February low of $2.
However, the price is still trading within a bullish zone from a mid-term perspective. Should this crucial support produce a strong bounce again, we can anticipate a major buyback with a double-bottom formation.
This formation may lead to a major trend reversal if the bulls push above the $8.3 level – June’s high. With the latest setup, things might get uglier in the coming days as the bears are now in charge of the price.
TON’s Key Level to Watch
The $5.27 support is the closest level to watch for selling at the moment. If the price flips this support, the next crucial level to watch is $4.6. A huge crack at this support could dip the price into the $4 and $3.4 range.
For now, the $6.4 level is held as resistance. The monthly rejected $7.26 high is now considered as resistance. Above it lies $7.65 and $8.3.
Key Resistance Levels: $6.4, $7.26, $7.65
Key Support Levels: $5.27, $4.6, $4
- Spot Price: $5.6
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
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