Toncoin (TON) faces challenges as it contends with long-term price range resistance, suggesting a potential downtrend for its future. Technical analysis is key to deciphering TON’s fundamental patterns and potential price movements.
Since October 2022, TON’s price has fluctuated between $1.2 and $2.7. This range has been validated as both resistance and support levels were tested twice. TON faced a rejection from the range’s resistance in the week of November 6-12, 2023, indicating a revival of the downward trend.
The weekly Relative Strength Index (RSI) showed a downward divergence before the price drop, hinting at further decline. If this trend continues, TON could retest the $1.2 support level, which would represent a 40.45% drop from the current price.
Daily charts reveal a broken ascending wedge pattern since September 11, 2023. Notably, on December 21 and 30, the price confirmed the channel’s support line as resistance, suggesting selling pressure.
The daily RSI’s fall below the bullish divergence line and its position below 50 signal bearish dominance, setting the stage for a potential descent towards the $1.65 support area. The most likely scenario points to further declines in TON’s price, with an initial target of $1.65 and the possibility of an extended drop to $1.2, unless there’s a decisive break above the recent high of $2.46.