Key Takeaways:
- Toncoin price is struggling to recover above the $5.80 and $6.00 resistance levels.
- TON is still well below a key bearish trend line with resistance at $6.50 on the daily chart.
- The bears could aim for a drop toward the $4.28 support or even $3.35 in the medium term.
Toncoin price is grinding lower below the $6.50 pivot level. TON is well below the 50-day simple moving average (blue) and might even drop below $5.00.
Toncoin Price Turns Red
In the last technical analysis, we discussed how Toncoin faced an increase in selling pressure after Telegram’s founder Pavel Durov was arrested in France. In support, TON society launched an initiative to urge France to #FREEDUROV.
In the past 3-4 days, there was a minor recovery attempt, but the bears remained in action. It seems like the price saw a steady decline from the $7.27 swing high like Bitcoin. It traded below the 61.8% Fib retracement level of the upward move from the $4.86 swing low to the $7.27 high to enter a bearish zone.
TON price is now trading well below the 50-day simple moving average (blue) and the 76.4% Fib retracement level of the upward move from the $4.86 swing low to the $7.27 high.
These are bearish signs and might spark more downsides in Toncoin. There is a short-term contracting triangle forming with resistance at $5.45 on the daily chart. On the downside, the triangle support sits at $5.20.
A clear move below the triangle support could send the price toward the $5.00 support. The first major support is near the $4.80 level. A downside break below the $4.80 support might call for a test of the 1.236 Fib extension level of the upward move from the $4.86 swing low to the $7.27 high at $4.28.
The next key support sits at $4.00, below which the price could even retest the $3.36 support in the coming weeks. Any more losses could open the doors for a test of $3.20.
Is A Recovery Possible In TON In September 2024?
Conversely, Toncoin price might attempt another recovery wave. On the upside, the price faces resistance near the $5.45 level. The first major resistance sits near the $6.00 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. It is close to the 50-day simple moving average (blue). A clear move above the trend line resistance might send the price toward the $7.25 resistance zone.
If the bulls push the price above $7.25, the price could easily run toward the $8.00 resistance. Any more gains might open the doors for a move toward the $8.30 level.
Overall, Toncoin price is struggling to start a recovery wave. It seems like TON Bears are aiming for a move below the $5.00 support in the near term.
