Toncoin (TON) Price Rejected by Long-Term Resistance, What Next?
The Toncoin (TON) price was rejected by long-term range resistance and broke down below a short-term pattern. It is likely to continue decreasing in the near future.
The Toncoin (TON) price has been trading within the range of $1.2 to $2.7 since October 2022. Both the resistance and support of the range have been tested twice, confirming the validity of the range.
In the week from November 6 to 12, 2023, the TON price faced rejection from the range’s resistance (red arrows) and declined afterward.
Last week, it formed a lower high and experienced a sharp drop this week. This shows that the bears are returning.
The weekly RSI created a bearish divergence (red lines) before the price declined and sloped downwards, supporting the possibility of further decrease.
If the decline continues, the TON price may retest the support of the range at $1.2. This figure corresponds to a 40.45% decrease from the current price.
The daily chart shows that the TON price has broken down below a rising wedge, formed since September 11, 2023.
On December 21 and December 30, the price confirmed the support line of the channel as resistance (green arrows) and created long upper wicks. These are signs of selling pressure.
The daily RSI broke down below the bullish divergence line and is below 50, shows that the bears are in control of the market.
Therefore, the TON price may decrease towards the support zone of $1.65 in the coming days.
The most likely scenario suggests that the TON price will decrease in the near future. The nearest target is $1.65, with further potential down to $1.2.
This bearish outlook would be invalidated if the price breaks above the recent high at $2.46 on the daily timeframe.
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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