Toncoin (TON) Drops 8% Over Weekend, Maintains Support Above $5
TON loses 8% over the weekend but is still in a bullish outlook. Strong confirmation is awaited.
Key Takeaways
- TON price hovers near the significant $5 support level.
- The inverted head and shoulders pattern suggests bullish reversal potential.
- A break above $6 may signal a stronger upward trend.
The price of Toncoin (TON) lost around 8% from last Friday, coming from a high of $5.80 to a low of $5.40 today. After a 30% recovery from September’s low, we saw a retracement when TON dipped to $4.50.
Considering it still holds above its significant $5 mark, is this retracement only a temporary correction before a more significant upside?
TON Price Analysis
TON hit an all-time high of $8.25 on June 15, an 8.7% increase from its previous peak on April 11. However, this move is part of a corrective wave, setting the stage for a subsequent decline.
On Aug. 5, TON fell to $4.70, matching its low from May 1, where it found support. The price rebounded to $7.20 by Aug. 14 but faced resistance, causing another drop.
After bouncing at the $5 mark on Aug. 26 and rising to $6 by 28, TON is again hovering around this horizontal support level but finally dipped below it on Sept. 3, staying there for three days. The drop was expected to be the final one, finishing TON’s prolonged correction. With the increase that followed pushing it back up by 32% to September’s high, there is a chance it started a new bull phase.
TON Price Prediction
Looking closer at the hourly chart, since Aug. 14, TON has formed a five-wave pattern heading downward. The recovery up to Aug. 28 is a corrective wave (wave 4), suggesting the following downward move marked its completion.
Upon dipping below $5, the price quickly bounced, slightly surpassing its previous high on Aug. 28. In conjunction with the latest retracement, this whole structure appears to be an inverted head and shoulders pattern, suggesting that the price made a U-shaped bottom.
Considering the proximity of the horizontal support zone and the strong momentum of upward advancement, there is a strong chance we will see the beginning of a new bull phase. However, further confirmation is needed.
The strongest confirmation will come from TON maintaining above $5 before continuing to advance past $6. If that happens, we can see its next upswing leading to a high of $7 and even slightly above it.
