Telegram-backed Toncoin (TON) has been the talk of the crypto town lately, its price soaring to a record-breaking $8.15 before settling around $7.60. This dramatic rise, coupled with technical indicators flashing both caution and bullish signals, has investors on the edge of their seats, wondering: is this a short-lived party or the beginning of a major ascent?
Cup, Handle Hints At Takeoff, But TDS Warns Of Bumpy Ride
Analysts are divided on TON’s immediate future. Crypto technician Ali Martinez throws a bucket of cold water on the recent euphoria, pointing to a “sell signal” on the TD Sequential indicator. This suggests a potential price correction lasting 1-4 trading sessions.
The TD Sequential presents a sell signal on the #Toncoin four-hour chart, predicting a correction of one to four candlesticks for $TON! pic.twitter.com/Yg4Da5PH8b
— Ali (@ali_charts) June 23, 2024
Fibonacci retracement levels serve as potential safety netts for investors, so those prepared for a dip should find comfort in them. These levels provide TONNE with a gentle landing on the descent; they are located at $7.44, $7.29, and potentially even $7.18.
Nevertheless, Ali’s short-term pessimism is counterbalanced by Alex Clay’s long-term optimistic outlook. Clay, an additional cryptocurrency expert, has observed a bullish “Cup and Handle” pattern forming on the charts. This pattern, which has historically been advantageous to bulls, suggests that the uptrend will persist after a period of consolidation.
The analyst reinforces his optimistic argument by emphasising TON’s recent breach of a substantial resistance zone, which is now expected to serve as a launchpad for further gains.
#TON/USDT Update $TON is consolidating above the broken supply zone👀
More upside is coming📈 https://t.co/ORgEnPEO7t pic.twitter.com/LdwXBg2W6u
— Alex Clay (@cryptclay) June 23, 2024
Toncoin’s Technicals Whisper Of Further Ascent
Clay sets some very ambitious pricing targets in addition to just identifying patterns. With an even more ambitious aim of $11.60, Clay thinks that TON will hit a cool $10.50 based on the measured motion of the Cup and Handle pattern.
Technical indicators present a similar picture when one zooms in on the one-day chart. The price has been challenged several times at $7.65, which is a level of resistance. The next target, if TON can overcome this obstacle, might be a magnificent $8.28. The bullish argument is reinforced by the 100-day EMA (Exponential Moving Average), which is currently at a supportive $6.01 and serves as a safety nett in the event of a correction.
Wild Ride Ahead
The technical indicators and bullish chart patterns point to a high likelihood of TON maintaining its higher trajectory, even though the TD Sequential indicator points to a possible short-term drop.Investors should prepare for what might be a crazy ride; opportunities may arise from short-term falls for those with long-term outlooks and strong stomachs.
Featured image from Asia Crypto Today, chart from TradingView