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Toncoin (TON) Price Breaks Short-term Pattern, Is a Sell-off Happening?

The price of Toncoin (TON) was rejected by the long-term pattern resistance and broken down below the short-term pattern. It is likely to decrease further in the near future.

Symmetrical Triangle

The Toncoin (TON) price has been trading within a symmetrical triangle since June 13, 2022. Both the support and resistance lines of the pattern have been tested multiple times, confirming the validity of the pattern.

After bouncing up from the triangle’s support line during the week of July 31 to August 6, 2023 (green arrow), the price increased to the resistance line of the pattern in mid-September.

Since then, the price has made several breakout attempts but failed and was rejected by the resistance line during the week of January 15 to 21, 2024 (red arrow).

Currently, the price is testing a crucial support zone at $1.95, which has historically provided support whenever it was rejected by the resistance line.

The weekly RSI indicator has crossed below 50 and is sloping downward, indicating that the bears have gained control.

Therefore, a breakdown from the crucial support zone at $1.95 could potentially cause the price to decrease by 31.05% to the triangle’s support line at $1.4.

TON/USDT weekly chart . Source: TradingView

Short-Term Outlook

The daily chart shows that the TON price has broken down below an ascending parallel channel and confirmed it as resistance on January 30, 2024 (red arrow).

This suggests that the downtrend from the yearly high at $2.7 is continuing.

The daily RSI favors further declines as it remains below 50 and slopes downward.

Given this pattern’s target of $1.7, the price may decline to this level in the next few days.

TON/USDT daily chart . Source: TradingView

Conclusion

The most likely outlook indicates that the TON price will decrease in the near future. The nearest target is $1.7, with a potential low down to $1.4.

Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.

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