Despite facing a bearish trend, Toncoin is showing signs of a potential bullish reversal as it hovers around the critical $4.65 support level. Traders are keen to see if this could pave the way for a rally towards $6.
Toncoin’s Current Scenario
With the recent increase in bearish pressure, Toncoin has retraced back to the important support area of $4.65. The negative crossover in the Exponential Moving Averages (EMAs) indicates a looming breakdown risk.
The big question now is whether Toncoin will manage to bounce back from the $4.65 support level and surge past the overhead trendline. Let’s delve deeper into the analysis.
In the daily chart, Toncoin continues to exhibit a downtrend, facing significant bearish sentiment. Nevertheless, the crucial support at $4.65 is acting as a stronghold for the TON price amidst the prevailing market pressure.
The $4.65 support level aligns with a descending triangle pattern formation. The escalating bearish sentiment has led to a ‘death cross’ event between the 50-day and 200-day EMAs.
Additionally, the 100-day and 200-day EMAs are on the verge of a bearish crossover, further confirming the bearish outlook. The Moving Average Convergence Divergence (MACD) and signal lines are in negative territory, displaying a consistent trend in negative histograms.
Despite the overall bearish stance on the daily chart, the dynamics at the critical $4.65 support level hint at a potential bullish resurgence.
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Potential for a Bullish Reversal
The daily Relative Strength Index (RSI) shows a bearish divergence as Toncoin finds support near the demand zone. Currently trading at $4.84 with a 0.41% uptick, Toncoin is showing indications of a possible bullish recovery.
As Toncoin nears the apex of the descending triangle pattern, the probability of a high-impact move rises. In case of improved market conditions post the U.S. elections, Toncoin could surpass the 20-day EMA, coinciding with the resistance trendline.
Technical analysis suggests that a breakout from the triangle pattern might face resistance around the $5.33 level before aiming for the psychological barrier at $6. A successful breakout could set the stage for Toncoin to target $8.18.
On the downside, a breakdown below $4.65 could lead to a test of the $4.34 level, followed by a potential drop to the psychological support at $4.00.
Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
Source: https://changelly.com/blog/will-toncoin-ton-breakout-from-triangle-pattern-near-4-65-support/
