TON is back in a downward spiral after recently forming a bullish pattern. Triggered by multiple rejection, it has shed over 20% loss since it initiated drops and is now rolling back to its recent monthly low.
After the last month’s bounce off $2.3, which came after a back-t-back sell, TON initiated a surge and formed a V-shaped pattern. This led to a significant price recovery, and the market turned bullish, triggering a lot of positive sentiments.
Meanwhile, the bears were also on the watch, looking for a key level to step back in action. They eventually won the tussle, and the price went in their favour after facing rejections at the $4.2 level – marked resistance.
This rejection invalidated the bullish signal and they are now in disbelief of the latest move. However, there’s still hope for them if they can defend March’s support level, marked as their recent entry point.
Meanwhile, the bears are back in action, and from the look of things, they may retake the mentioned month level, where the bulls initiated an entry last month. Failure to defend it well could lead to a crackdown, which could cause a catastrophic loss in the future.
Defending this support could trigger a rebound. This may lead to another surge capable of bringing the bulls back in action with a possible reverse pattern in the form of a double bottom on the daily chart.
TON’s Key Level to Watch
Now that the bears are back in action, the $2.74 and $2.36 levels are immediate supports to watch on the way down. A breakdown there could plunge the price to $2 and maybe $1.5 in the near term.
If the bulls manage to push back, the potential resistance level to watch for a rally is $3.18, along with $3.52. A push through $4.21 should set the market up for a surge to $4.79 and $5.66 in the future.
Key Resistance Levels: $3.18, $3.52, $4.21
Key Support Levels: $2.74, $2.36, $2
- Spot Price: $3
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.