Price Analysis

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

Explore how Toncoin price reacts to market movements and whale activity on the TON Network.

Published by

Updated 24 Oct, 2024 | 11:04:42 AM UTC

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

Highlights

The TON price developing a double top pattern from $7.5 hints at a potential for a major correction.
The 20-and-50-day EMA wavering at $6 support hints at a strong demand zone for the TON price.
The intraday trading volume in Toncoin is $145.6 Million, indicating a 37% loss.

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

Toncoin Price| Tradingview

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.

Sahil Mahadik

Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

Published by

Sahil Mahadik

Updated 24 Oct, 2024 | 11:04:42 AM

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