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Toncoin (TON) Remains in Horizontal Support Zone Despite 14% Decline

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • ON’s high of $8.25 faced strong corrective pressure.
  • Inverted head-and-shoulders hint at possible bottom formation.
  • Breakout or support breach is likely to define the next trend.

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 Price Analysis

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.

TON price analysis
TONUSD still above horizontal support | Credit: Nikola Lazic/Tradingview 

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 Price Prediction

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. 

TON price prediction
TONUSD needs to hold above $4.50 | Credit: Nikola Lazic/Tradingview 

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. 

Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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