Key Takeaways:
- Toncoin price extended losses and tested the $4.45 zone.
- TON is now well below a major bearish trend line with resistance at $6.00 on the daily chart.
- There could be a recovery wave, but it might face hurdles near $5.85 and $6.00.
Toncoin price is consolidating losses near the $4.80 level. TON could revisit the 50-day simple moving average (blue), where the bears might reemerge.
Toncoin Price Recovery Could Face Many Hurdles
The last technical analysis discussed how Toncoin could extend losses and trade below the $5.00 support zone. The bears remained in action and pushed the price below $5.00. TON even spiked below the $4.50 level.
It traded to a new multi-week low at $4.46 like Bitcoin and Ethereum. It is now consolidating losses and attempting a minor recovery wave above the $4.80 level.
TON price is now trading well below the 50-day simple moving average (blue). If there is a recovery wave, the price could face resistance near the $5.00 level. The first major resistance is near the 23.6% Fib retracement level of the downward move from the $7.27 swing high to the $4.46 low at $5.12.
A clear move above the $5.12 resistance zone could initiate a decent increase. The next key resistance sits near the $5.85 level or the 50% Fib retracement level of the downward move from the $7.27 swing high to the $4.46 low.
The main resistance is now forming near the $6.00 level. On the daily chart, there is also a key bearish trend line with resistance at $6.00. It is close to the 50-day simple moving average (blue). A clear move above the trend line resistance and a close above the 50-DSMA might send the price toward the $6.60 resistance zone.
If the bulls push the price above $6.60, it could easily run toward the $7.95 resistance. Any more gains might open the door to a move toward the $8.20 level.
Recently, the TON Foundation launched a new 5 million Toncoin DeFi incentive program to strengthen the adoption of USDt-TON. The incentive program’s initial phase will focus on rewarding liquidity providers in TON/USDt, stTON/USDt, and tsTON/USDt pools on STON.fi and DeDust.
Another Decline In TON?
Conversely, Toncoin might struggle to recover above $5.12 or $5.85. On the downside, immediate support is near the $4.60 level, and the first major support is near the $4.30 level. A downside break below the $4.30 support might call for a test of the $4.00 handle.
The next key support sits at $3.80, below which the price could retest the $3.35 support in the coming weeks. Any more losses could open the doors for a test of $3.20.
Overall, the Toncoin price is consolidating losses below $5.00. TON might recover above $5.12, but the bears could take a strong stand near the $5.85 and $6.00 levels in the near term.
