Key Takeaways:
- Toncoin price declined heavily following Telegram founder Pavel Durov’s arrest in France.
- TON is now trading well below a key bearish trend line with resistance at $6.50 on the daily chart.
- The bears remain in action unless the price recovers above the 50-day simple moving average (blue).
Toncoin price is showing many bearish signs below $6.50. TON could extend losses below the $5.50 and $5.00 levels in the near term.
Toncoin Price Faces Increased Selling Pressure
After Telegram founder Pavel Durov’s arrest in France, Toncoin saw a sharp decline. There was a move from the $6.80 resistance zone and the price declined below the $6.20 level. The price dropped over 10% and traded below the $5.50 level, while Bitcoin and Ethereum climbed higher.
Finally, the bulls appeared near the $5.25 zone. A low was formed at $5.26 and the price started a consolidation phase. There was a minor increase above the $5.50 level, but the price is now well below the 50-day simple moving average (blue).
Recently, the TON community released a statement related to the Telegram’s founder Pavel Durov confirming that the community stands strong and supports freedom of speech and decentralization.
TON price was able to recover above the 23.6% Fib retracement level of the downward move from the $7.27 swing high to the $5.26 low. On the upside, the price faces resistance near the $6.00 level. The first major resistance sits near the $6.25 level.
The main resistance is now forming near the $6.50 level. There is also a key bearish trend line with resistance at $6.50 on the daily chart. The trend line is close to the 61.8% Fib retracement level of the downward move from the $7.27 swing high to the $5.26 low.
A clear move above the trend line resistance might send the price toward the main hurdle at $6.80 and the 50-day simple moving average (blue). If the bulls push the price above $6.80, the price could easily run toward the $7.00 resistance. Any more gains might open the doors for a move toward the $7.80 level.
More Downsides In TON?
Conversely, TON could fail to surpass the trend line resistance or $6.50. In the stated case, it could trim gains and revisit the $5.40 support. The first major support is near the $5.25 level.
The main support is now forming near the $5.00. A daily close below the $5.00 support might start a major decline. The next key support sits at $4.25, below which the price could even retest the $4.00 support in the coming days. Any more losses could open the doors for a test of $3.65.
Overall, Toncoin price is showing bearish signs. If TON fails to recover above $6.00 and $6.50, there could be another decline, and the price could even test $5.00.
