Toncoin (TON) Hits $5 Support, Continuing Downtrend With Reversal on the Horizon

Key Takeaways

• TON peaked at $8.25 before entering a corrective wave.
• Recent support found around $5 is crucial for future trends.
• A sustained move above $5 could signal a bull phase.

The analysis of Toncoin’s (TON) recent price movements reveals significant fluctuations and potential patterns that could indicate its future trajectory.

Following an all-time high, TON has experienced notable corrections and support levels critical for predicting its next moves.

Understanding these dynamics can provide insights for investors navigating this volatile asset.

TON Price Analysis

TON reached an all-time high of $8.25 on June 15, marking an 8.7% increase from its previous peak on April 11.

However, this surge is part of a corrective wave, indicating a potential decline ahead.

On Aug. 5, TON dropped to $4.70, aligning with its low from May 1, where it found support. The price rebounded to $7.20 by Aug. 14 but encountered resistance, leading to another decline.

After bouncing off the $5 mark on Aug. 26 and rising to $6 by 28, TON once again hovered around this horizontal support level.

However, it dipped below this threshold on Sept. 3 and remained there for three days. This drop was anticipated to be the final phase of TON’s extended correction.

A recovery followed from Sept. 6 with the price of TON reaching a high of $6.14 on Sept. 28, but again reverted to the $5 support.

Was this the final attempt to establish an uptrend and proceed into a bull phase, or was it another corrective recovery before further downside and finally a breakout below $5? 

TON Price Prediction

Analyzing the hourly chart, since Aug. 14, TON has developed a five-wave pattern moving downward.

The recovery up to Aug. 28 represents a corrective wave (wave four), indicating that the subsequent decline marks the completion of this structure.

After dipping below $5, the price quickly bounced back, slightly exceeding its previous high from Aug. 28. Coupled with the recent retracement, this entire formation appears to be an inverted head and shoulders pattern, suggesting the price has formed a U-shaped bottom.

Since Sept. 6 to 14, we have seen an uptrend with a five-wave pattern, indicating an impulsive move.

The higher high of $6.10 on the 28 could be a B wave from the subsequent ABC pattern to the downside, with its following decline as its final one. 

If TON maintains above $5 and makes a bounce, there will be a strong indication of a staring bull phase with a near-term target of $7.

But if it goes below it, this possibility will be invalidated, and we can anticipate lower values than in September.

Read more: Toncoin Price Prediction 2024: TON Price Analysis