Key Takeaways
Toncoin (TON) has recently shown significant volatility, hitting new highs but facing resistance and notable corrections.
Despite a recovery attempt, TON’s current trend is challenging bullish expectations, making its next moves crucial for potential investors.
TON’s price hit an all-time high of $8.25 on June 15, reflecting an 8.7% rise from its previous peak on April 11.
However, this increase seems to be part of a corrective wave, suggesting the potential for further decline.
On Aug. 5, TON dropped to $4.70, a level it had previously tested on May 1, where it found support. It rebounded to $7.20 by Aug. 14 but faced resistance, leading to another decline.
After bouncing off $5 on Aug. 26 and rising to $6 by Aug. 28, the price stayed within this range before dipping below $5 on Sept. 3, indicating the final stage of an extended ABC correction.
A recovery began on Sept. 6, with TON reaching $6.14 by 28 before pulling back to $5 support on October 9.
It held there but ultimately fell through the horizontal support zone, reaching $4.60 at its lowest point on Oct. 26 on a 14% downward spike.
Despite the downfall, the price still holds above its key horizontal support but is now questioning the previously bullish expectations.
TON’s brief dip below $5 formed an inverted head-and-shoulders pattern, hinting at a potential U-shaped bottom.
A five-wave upward movement followed from Sept. 6 to 28, indicating a possible impulsive move.
The following downtrend could be an ABC correction to the downside, which landed at the 0.786 Fibonacci level and found support.
If we see an increase and a breakout above the descending resistance, that will signal the start of the next bull phase. However, a decisive breakout below the horizontal area and a lower low to Sept. 5 will continue the downtrend.
In the first case, TON will recover past its September high and go above $7. However, if the price goes below $4.50, a bearish outlook, with values around $3 for its next target, will be more likely.