The price of Toncoin (TON) has broken above a long-term resistance trendline and confirmed it as support. The price is likely to continue rising towards the next significant resistance level.
Long-term Resistance Trendline
The TON price has been trading below a descending resistance trendline since reaching its all-time high of $2.9 in December 2022. During this time, the price was rejected by the resistance trendline several times and dropped to a horizontal support zone at $1.2 (yellow arrow) before recovering.
In the week from August 28th to September 4th, the TON price broke above the resistance trendline and confirmed it as support this week (green arrow). This is a bullish development, indicating that the previous downtrend has ended, and a new uptrend has begun.
The weekly RSI (Relative Strength Index) has crossed above the 50 level and is trending upwards, signaling that the bulls have an advantage.
Therefore, TON is likely to continue rising towards the next significant resistance level at $2.6.
Daily Outlook
The daily chart shows that the TON price has bounced from the 0.5-0.618 Fibonacci retracement support level of the previous upward move.
According to Fibonacci retracement theory, after a significant price change in one direction, it is expected to retrace a portion of the previous price level before continuing the initial trend. Bouncing from the 0.5-0.618 Fibonacci retracement zone suggests that this is just a correction within the overall upward trend, and the price is likely to reach new highs soon.
Furthermore, the TON price has formed a bullish engulfing pattern after the bounce (green ellipse). This is a bullish pattern, indicating strong buying pressure at lower levels.
The daily RSI has also moved above the 50 level and is trending upwards, supporting the continuation of the uptrend.
In conclusion, the technical outlook suggests that TON’s price is likely to continue rising in the near future, with a potential target of $2.6.
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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