Toncoin (TON) price is encountering difficulties while grappling with long-term price range resistance, indicating a potential downtrend for Toncoin’s future. Let’s delve into technical analysis to decipher the fundamental patterns and potential price movements for TON.
Long-Term Price Range Resistance: A Validity Test for Toncoin
Since October 2022, the price of Toncoin (TON) has fluctuated between $1.2 and $2.7. This range has proven its significance and confirmed its validity as both resistance and support levels were tested twice.
TON faced rejection from the range’s resistance during the week of November 6-12, 2023, leading to a decline. A lower peak formation last week and a sharp drop this week indicate a revival of the downtrend.
The weekly Relative Strength Index (RSI) created a downward divergence before the price drop, reinforcing the potential for further decline. If this trend continues, TON could retest the $1.2 support, which would mean a 40.45% drop from the current price.
Daily Chart for TON: Resolving Short-Term Formations
Examining the daily chart reveals that TON has broken out of an ascending wedge formed since September 11, 2023. Notably, on December 21 and December 30, the price confirmed the channel’s support line as resistance, as indicated by long upper wicks, signaling selling pressure.
The daily RSI’s fall below the bullish divergence line and its position below 50 indicate bears’ dominance in the market. This scenario sets the stage for a potential descent towards the $1.65 support region in the coming days.
Predicting Future Movements: Bearish Outlook Prevails
The most likely scenario points to further declines in TON price. The initial target is set at $1.65, with an extended drop potential to $1.2. This bearish outlook remains valid as long as there is no decisive break above the recent high of $2.46 in the daily timeframe.
In conclusion, the Toncoin (TON) price analysis suggests a challenging landscape marked by long-term price range resistance and short-term breakout patterns. Investors should be cautious and closely monitor fundamental support and resistance levels. The downtrend is predominant, but a rise above $2.46 could change the course.
