TON appears very bullish on the daily chart, but the short-term outlook remains bearish following a broader market correction. It posted major gains today and showed strength amid rising demand.
Following a V-shaped pattern on the 4-hour chart, TON has seen an impressive recovery since the price bounced off the $2.36 level a few days ago. This level is marked as support, but things might get uglier if the supply level increases.
It appears highly bullish on the daily chart and is currently at the cusp of breaking out of a key resistance level. A surge through it could bring a retest at the $4.7 level that broke as support during last month’s crash.
Meanwhile, this mentioned level is likely to pose a threat. A rejection there would trigger a sell and this could plunge the price back to the bottom. If the bulls defend it well, we may see a strong bounce to where it started to fall from $7 last December. Failure to defend it well could dip the price to a new low.
A further increase could bring an extension of the above bullish pattern to the peak of $7. From there, we can expect a broader pullback before making a strong bounce back to the peak. This may lead to an inverse head-and-shoulder pattern on the weekly chart with a potential break-up.
That said, TON’s short-term trend is still in a downward range, despite the recent surge. While trading at a critical resistance, a major surge would determine if the price will reverse or continue the existing trend.
TON’s Key Level to Watch
Source: Tradingview
As it currently faces hurdles at the $3.9 resistance, a clear breakthrough should rally the price to $4.79 and $5.66 in the upcoming week.
Aside from the holding $3.5 level, the support to watch for drops are $3.18, $2.74 and $2.36. If the price drops and these price levels fail to provide support, TON may navigate the $2 level for support.
Key Resistance Levels: $3.9, $4.79, $5.66
Key Support Levels: $3.18, $2.74, $2.36
- Spot Price: $3.86
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!
