Toncoin bulls face tough battle – Is $3.6 just a dead cat bounce?
- Toncoin maintained a bearish every day market construction.
- The excessive quantity on the latest bounce gave some hope to TON bulls.
Toncoin [TON] holders weren’t doing nicely for probably the most half. Information confirmed that 96% of holders had been underwater, however the token noticed a 25% value bounce prior to now 4 days.
But, the severity of the downtrend on the every day chart was uninterrupted.
How excessive may the present bounce go? The $3.85 resistance stage was one of many main candidates for a bearish reversal.
AMBCrypto examined the related liquidation heatmaps to grasp TON’s potential value strikes.
Toncoin to climb to $3.6 earlier than bearish reversal
Supply: TON/USDT on TradingView
The latest decrease excessive at $3.95 from February was a possible value goal for TON within the coming days. The MACD remained under zero however fashioned a powerful bullish crossover.
It was in response to the fast positive aspects in latest positive aspects, however the prevalent development on this timeframe remained bearish.
Nonetheless, the excessive buying and selling quantity in latest days noticed the OBV leap above the lows from December. In doing so, it sparked some hope for a bullish transfer.
The Fibonacci retracement ranges had been plotted primarily based on the rally from February to June 2024. The bounce above 78.6% was encouraging within the quick time period, however there was resistance overhead.
The $3.95 goal have to be breached to impact a bullish market construction shift.
Even when this occurred, the $4.5 zone would possible act as a provide zone. Total, the probabilities of a fast TON restoration had been slim.
The 1-month liquidation heatmap highlighted the liquidity pockets at $3.66 and $3.9. The previous stage was simply above the highs had been Saturday, and the latter marked the decrease excessive fashioned a month in the past.
Collectively, these two ranges had been the prime candidates for a bearish reversal to start at.
Zooming into the 1-week heatmap, we will see that the $3.2 and $3.67 ranges had been those to be careful for. The liquidity round $3.2 was corresponding to that round $3.6.
Since $3.6 was nearer, TON was extra prone to climb greater to comb the liquidity earlier than falling to $3.2.
Swing merchants can look ahead to such a transfer after which search for a reversal within the decrease timeframes, focusing on a retracement of the transfer. Often, such sturdy reversals have a superb probability to happen on Monday.
A transfer past $3.7 would invalidate the concept of a retracement to $3.2 seeking liquidity.
Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion
