Toncoin Price Faces Bearish Double Top Pattern: Will Support at $6 Hold?

The crypto market experienced a roller coaster ride this week. It initially surged with excitement following the US SEC’s approval of the spot ETH ETF, but later faced a correction period driven by Bitcoin. This caused broader market uncertainty with most of the major altcoins including TON witnessing a sideways action. The Toncoin price is currently trading at $6.4 and trying to stabilize above $6 physiological support. Will the correction trend extend or buyers could counterattack at the $6 floor?

Also Read: Toncoin Price Forecast Hints a Risk of 25% Fall Amid Emerging Double Top Pattern

Whale Activity Boosts Toncoin Network: Impact on Price Trends

On May 11th, the Toncoin coin witnessed a bearish reversal from the $7.5 resistance. This turnaround tumbled the coin price by 20% to hit support at a $6 psychological level. These two reversals within five weeks from the same resistance signal the formation of a bearish pattern called double top.

If the pattern holds true, the sellers could lead a 27% downfall only to complete the first part of the setup and challenge neckline support at $4.7. 

However, the TON price is currently in a sideways action seeking support at $6.2 amid the market uncertainty. A potential reversal from this support pushed altcoin 4% in the last 48 hours to currently trade at $6.45.

Based on the analysis shared by Joao Wedson from CryptoQuant, it’s evident that the TON Network has seen a notable surge in high-value transactions. Throughout 2024, there’s been a dominant trend of transactions exceeding $1 million, which represents a significant portion of the on-chain volume for TON.

Surge in High-Value Transactions on #TON Network

“Transactions exceeding $1M USD dominate the on-chain volume of $TON.” – By @joao_wedson

Read more 👇https://t.co/vc98zfhICU

— CryptoQuant.com (@cryptoquant_com) May 24, 2024

This uptick in large transactions suggests a growing interest from whales—investors with substantial resources—and indicates an overall increase in network activity. The increasing frequency of these transactions is not only a marker of heightened investor interest but also plays a crucial role in bolstering the network’s robustness.

Thus, if the bullish reversal breaks $7.5 resistance the bearish thesis will get invalidated and chase an immediate target of $8.8.

Technical Indicator 

• Relative Strength Index: The daily RSI slope above the midline (50%) indicates a neutral to bullish sentiment.
• Pivot level: With the Toncoin projecting the potential of entering a price discovery mode, the Traditional pivot level shows the overhead supply pressure at $8.8, followed by $10.