This Is Why Toncoin’s (TON) 5% Uptick May Not Hold
11/06/2024 18:00
Toncoin (TON) has surged 5%, but bearish signals suggest a limited upside as resistance levels and trend indicators point to a reversal.
The price of Telegram-linked Toncoin (TON) has surged 5% in the past 24 hours, accompanied by a 45% spike in trading volume. Currently, the altcoin trades at $4.78. Toncoin’s rally aligns with broader market momentum, reflected in a 10% increase in global cryptocurrency market capitalization over the same period.
However, Toncoin’s technical indicators suggest a possible bearish shift that may limit further gains. This analysis examines the signals pointing to a potential reversal.
Toncoin Bears Are in Control
As of this writing, the red line of Toncoin’s Super Trend indicator rests above its price. This confirms the bearish bias toward the altcoin.
The Super Trend indicator identifies the overall direction and strength of a trend. It appears as a line on the price chart, which changes color based on the trend direction: green for an uptrend and red for a downtrend. When the Super Trend line is below the asset’s price, it signals an uptrend, suggesting that bullish momentum is likely to continue.
As in TON’s case, sellers are in control when the Super Trend line turns red and appears above an asset’s price. The red line acts as a resistance level and indicates a price “ceiling” where an asset’s price may face significant selling pressure. For TON, this stands at $5.21.
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TON’s Parabolic Stop and Reverse (SAR) indicator confirms the bearish outlook. At press time, the dots of this indicator, which also identifies potential trend direction and reversals, are above the altcoin’s price. When set up this way, there is a significant bearish bias against the asset, and a downtrend is underway.
TON Price Prediction: Will Coin Hold or Slip?
Toncoin is currently trading at $4.78, hovering just above a critical support level at $4.44. If the broader market rally slows and bearish pressure increases, Toncoin could potentially retreat toward this support zone.
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On the other hand, if the current uptrend remains strong, Toncoin may attempt to break through the $5.21 resistance level of its Super Trend. A successful move above this resistance could pave the way for the Toncoin price rally to continue toward $5.91.
Disclaimer
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