Toncoin [TON], the native token of The Open Network (TON), saw a bullish performance in the past 24 hours. The token gained 2.6% to trade at $1.53 at the time of writing, with a market capitalization of $3.77 billion.
On the 16th of December, the TON Foundation selected OpenPayd to provide the ecosystem’s global fiat infrastructure. The partnership allows fiat flows to and from ecosystem partners and operational activities across multiple regions.
The news announcement might be behind the minor TON rally over the previous day. What was the token’s long-term trend like, and where is the price likely to go next?
Multi-timeframe analysis of Toncoin
On the 1-day chart, the swing structure was bearish, evidenced by the sharp move down from $2.16 to $1.45. The internal structure attempted to turn bullish but failed at the imbalance between $1.6-$1.7 (white box).
Despite the failure to break this supply zone, the A/D indicator had climbed higher to suggest buyers had a slight short-term advantage. At the same time, the RSI remained below the neutral 50, and the Stochastic RSI was falling further.
Together, the indicators showed that momentum favored the sellers. A move beyond $1.7 could see TON bounce higher to test the key Fibonacci retracement levels overhead at $1.89 and $2.01.
The 1-hour chart revealed a short-term supply zone at $1.56-$1.58.While the indicators showed some buying strength and upward momentum, TON faced rejection from the overhead resistance. Bears still controlled the trends, short-term and long-term.
Possible bullish scenario
The less likely route ahead for Toncoin is a clean breakout past the $1.7 resistance zone.
In this scenario, strong bullish impetus across the market would drive increased capital flow into TON, resulting in a rally beyond $2.
Traders, use THIS liquidity pocket to sell
A bounce in the short term to $1.7 is possible. It would be extremely difficult for TON bulls to push any higher.
This was because of the dense cluster of short liquidations around $1.7, which would likely drag prices to it and possibly as high as $1.8.
Given the structure and lack of consistent demand on the 1-day timeframe, and the market-wide sentiment recently, it seemed much more likely that TON would face a bearish reversal at $1.7 than a sustainable bullish breakout.
Final Thoughts
- Toncoin saw a minor rally over the past 24 hours as it challenged a local resistance zone at $1.58.
- This bounce could extend to $1.7, but likely not much higher, and would be followed by a bearish move.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
