The past three days have been tough for TON as it posted minor losses amid retracement. While its V-shaped recovery pattern is still intact, it is likely to resume bearish avtions if the price continues to drop daily.
Last month saw most altcoins through a temporal halt in selling as they retraced significantly, but many short-lived the momentum following a sharp rejection and they quickly lost steam after tapping a month’s high.
However, TON’s retracement is still looking intact on the daily chart as it continues to form a V-shaped pattern, but the crypto recently shed losses following a bearish weekly start. This loss came as a result of the retracement of the bullish impulsive movement, which came in the form of a higher high and higher low pattern on the hourly chart.
If this bullish pattern continues to play, we can expect a bounce back soon. This should bring more increase to sustain the bullish V-shaped pattern on the daily chart. As mentioned in the previous analysis, this reversal pattern is capable of sending the price to $7, to form an inverse head-and-shoulder pattern after a major pullback.
On the other hand, a sharp drop from the current trading level could bring us back to the recent bottom. Such a move would invalidate the current bullish signal daily, especially if the price breaks down.
TON’s Key Level to Watch
Source: Tradingview
In the latest drop, there’s close support at $3.52. If this support fails to produce a bounce, the price may roll over to the $3.18, $2.74 and $2.36 levels before breaking lower.
Retaking the weekly lost $4.21 high, TON may advance buying towards the $4.79 level. The higher resistance level to watch for a surge is $5.66.
Key Resistance Levels: $4.21, $4.79, $5.66
Key Support Levels: $3.52, $3.18, $2.74
- Spot Price: $3.66
- Trend: Bullish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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