Toncoin (TON) Forms Double Top Pattern, Bearish Or Bullish?
May 31 2024 - 6:30AM
NEWSBTC
Toncoin serves as the native token of the TON ecosystem and has
multiple use cases. The token like other native tokens such as
Solana (SOL) and Ethereum (ETH) has been doing well, as it
experienced a notable price rise, especially with the launch of
Notcoin (NOT) recently. Based on TON’s past price movements,
the token has successfully formed a Double-Top chart pattern, which
is typically followed by a price decline. With a 10% decrease in
the past day’s trading volume to $152 million the price of TON is
indicating a bearish trend. In the last 24 hours, TON was around
-0.39% down with a market capitalization of about $15,52 billion
and the price was trading around $6.44. TON, at the moment, is
trading above the 1-day Simple Moving Average (SMA), but in the
4-hour time frame, it is trading below the range. Technical
Indicators Point Toward Sustained Downtrend For TON From the 4-hour
time frame, the price of TON is trading below the 100-day simple
moving average, which is a clear sign that it might be poised for a
bearish movement. The 4-hour Moving Average Convergence Divergence
(MACD) also signals that TON might move bearishly as the MACD
histograms are already trending below the MACD zero line. In
addition, both the MACD signal line and the MACD line have crossed
and are heading towards the MACD zero line of which there is a
possibility they might move below it. On the 1-day time
frame, it can also be observed that the price TON is showing
signs of going bearish as it is attempting to move toward the
100-day SMA. Given that the MACD histograms are trending below the
MACD zero line, the 1-day Moving Average Convergence Divergence
suggests a possible bearish trend ahead. Both the MACD line and the
MACD signal line have crossed and are moving towards the direction
of the zero line, as seen in the 4-hour timeframe. Crucial Points
To Determine Next Move From TON’s previous price action, it can be
observed that it has managed to create some highs and lows, which
are key points in determining its next destination.
Currently, there is one major resistance level of $7.677 and two
major support levels of $4.688 and $3.34. If the price TON
continues to move downward and breaks below the support level at
the $4.688 mark, it might move even further to test the $3.34
support level. However, if it fails to break below the $4.688
level, it will continue in its upward trend toward the $7.677
resistance level. Should the price break above this resistance
level, it might move even further to create a new high. Featured
image from Pinterest, chart from Tradingview.com
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