2 September 2024
The crypto market is driven by fear and uncertainty as Toncoin (TON) faces a deeper correction following days of intense selling pressure. The arrest of Telegram CEO Pavel Durov last Saturday triggered a sharp decline in TON’s price, resulting in a more than 25% retrace. This development has alarmed investors, raising concerns about the asset’s near-term outlook.
Top analysts and investors increasingly view TON as being in a correction phase, with one prominent analyst predicting an additional 30% drop from current levels. This bearish prediction comes after TON lost a key support level, further intensifying concerns about its future performance.
The combination of these factors suggests that TON may continue to experience downward pressure, making the situation increasingly precarious for investors.
Toncoin Loses $5.73 Support
Toncoin has been under significant negative pressure since the arrest of Pavel Durov, and it now faces the possibility of a deeper correction. Once one of the strongest altcoins this year, TON is at risk, with many analysts and traders predicting lower prices due to the ongoing weak price action. The recent developments have made investors wary as TON struggles to maintain its earlier momentum.
Top analyst and trader AlienOvichO has shared a technical analysis on X highlighting a clear head and shoulders pattern. This well-known bearish formation typically signals the beginning of a downtrend.
According to AlienOvichO, for this bearish scenario to fully play out, TON must first break below the August low of $4.78. Losing this critical support level could trigger a painful correction, exacerbating the losses already experienced by investors.
With the current market sentiment and technical indicators pointing toward further declines, Toncoin’s immediate future looks increasingly uncertain. The market will be closely watching whether TON can hold its ground or if it will succumb to the predicted downtrend.
TON Trading Below Key Support
Toncoin (TON) is trading at $5.22 after losing a crucial support level since September 2023. This support was the daily 200 moving average (MA), now at $5.83, a key long-term anchor for the price. However, this critical support was lost last Monday, and TON has closed below it multiple times since September 12, 2023, signaling a shift in market sentiment.
With the daily 200 MA no longer providing support, TON’s price tests local demand levels. If these levels fail to hold, the next target for the bears is the yearly low at $4.60, which is only 11% away from current prices. This level will be crucial to monitor as further declines could push TON into deeper correction territory.
Conversely, if TON manages to reclaim the daily 200 MA, it could signal a potential recovery, offering a more optimistic outlook for investors.
Featured image from Dall-E, chart from TradingView