Amidst this week’s drops, TON lost almost 5% of its value to test a key support level. However, the price has recovered briefly in the past hours but its bearish trajectory is still intact from a short-term perspective.
Unlike many altcoins, which have recovered significantly from their local bottom over the past months, TON remained bearish and showed signs of weakness daily.
However, following this week’s downfall, the price broke down and lost the $5 level. This led to a serious reduction but it later found a solid ground above the $4.45 level that has been standing as key support since May. It has bounced off this level and now looks strong on the day.
That downfall was mainly triggered by a rejection near the descending trendline, which has been acting as dynamic resistance over the past three months.
If selling resumes with a break below the mentioned key support, we can expect more reductions in the future. Should the bulls manage to defend this key support well, the price may continue to increase until it breaks out of the descending resistance line, leading to a bullish reversal trend.
Currently, there are no signs of bullishness in the market. A look at the daily price actions suggests that the bears are still gaining dominance.
TON’s Key Level to Watch
While the market is still positioned in a downward range, a drop below the monthly low could plunge the price to the $4 level. A further break could slip the price to $3.5 in no time.
A recovery above $5 could trigger an increase to the $5.5 resistance level, testing the descending trendline. A break through it could send us to the $6.15 resistance. Higher resistance levels to watch for an increase are $7 and $8.
Key Resistance Levels: $5, $5.5, $6.15
Key Support Levels: $4.45, $4, $3.5
- Spot Price: $4.95
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
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