Toncoin’s Stagnant Phase: Can It Break Free?
Toncoin’s Current Range
Since mid-August, Toncoin (TON) has been confined within a narrow trading range, fluctuating between $6.4 and $7. Despite a significant relief bounce in Bitcoin (BTC) that saw it reach $64k, TON’s price remained largely unaffected. This lack of movement has left investors and traders wondering if TON can break out of this sideways trend.
The crypto market sentiment has shown signs of improvement as the weekend approaches. This raises the question: which levels should TON speculators keep an eye on? Understanding these key levels could provide insights into potential breakout points for the altcoin.
Resistance and Market Dynamics
On higher timeframe charts, the 200-day Simple Moving Average (SMA) has been a critical level for price rejections, occurring three times since mid-July. This SMA aligns with the 38.2% Fibonacci retracement level at $7, making it a significant dynamic resistance point. Traders should note that $7 remains a crucial resistance level in the near term.
The price chart readings suggest a possible continuation of the sideways structure, as indicated by fluctuating demand. The Relative Strength Index (RSI) has been oscillating between neutral and 60-point levels, reflecting this uncertainty. However, recent price action has also formed a local bottom, with the 200-day SMA acting as the neckline resistance. This pattern is typically bullish, suggesting a potential breakout that could push TON to the 23.6% Fibonacci level at $7.45, representing a possible 7% gain.
Liquidity Clusters and Key Targets
According to liquidity data, TON has significant liquidity clusters at $7.3, $6.3, and $6.0. These clusters, particularly the higher liquidity above $6, could serve as key price inflection points. The distribution of liquidity on either side of the current price action supports the notion of a continued sideways structure.
Monitoring these liquidity clusters can provide valuable insights into potential breakout or breakdown points. Traders should be aware of these levels as they could indicate where significant buying or selling pressure might emerge.
Network Activity and Market Sentiment
TON’s network activity has shown slow growth, with active addresses remaining nearly flat since August 17. This sluggish network activity suggests a lack of strong user interest in the altcoin, which could hinder a robust recovery. However, an extended rally in Bitcoin could positively impact TON’s value, potentially invalidating the current neutral outlook.
It’s essential to track Bitcoin’s movements as they could influence TON’s price action. A strong performance by Bitcoin might provide the necessary momentum for TON to break out of its current range.
Conclusion
Toncoin has been stuck in a tight trading range below $7, with key resistance at the 200-day SMA and the 38.2% Fibonacci level. Liquidity clusters at $7.3, $6.3, and $6.0 could serve as critical inflection points. While network activity remains slow, an extended Bitcoin rally could spur TON’s value. Traders should keep an eye on these levels and market dynamics to anticipate potential breakout opportunities.
Meanwhile, the owner of Telegram, Pavel Durov, has just been arrested in France for failing to censor his platform. Potential charges could include terrorism, money laundering, and more. Wil this affect Ton’s price?
