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Toncoin (TON) is completing a retest phase to ease a bullish revival during a broader market pullback and preparing for action. The intraday jump and lower price rejections tease a flag breakout for a 40% hike.
Ranked amongst the top 10 cryptocurrencies, Toncoin has a market cap of $16.74 Billion. However, the ongoing correction phase in $TON has caused Toncoin to slip in position in the market.
Despite trading at discounted levels from its 52W high or all-time high, the TON trend reversal is attracting the attention of smart investors in the market. Will the Toncoin token revival result in a massive surge to outperform XRP this year?
Freefall in Toncoin Warns an Intense Correction
Failing to sustain the uptrend motion of higher low formation, Toncoin breaks under a long-coming support trendline. $TON registers a 12% decline this month with a day left, as it undermines the 20% growth last month.
As the higher price rejection in the daily candles becomes significant and consecutive, the downside risk increases for Toncoin. The ongoing correction rally starts with the double top formation at the $8 mark.
Generating a new resistance trendline, the support trendline breakdown drops $TON to $6.66. Further, due to the lack of any significant body formation in the last five daily candles, Toncoin warns of a huge supply inflow.
Supporting the bearish course of action, the constant rejection from $7 hints at a downfall. Further, the 9% rise in trading volume under such conditions adds extra risk.
Last Hope for Bullish Revival Before $5
Although the bearish sentiments are high, the underlying demand provides some under-noticed bullish signals. Like the Stochastic RSI lines and the daily RSI line witness an uptick close to the oversold boundary, with the Stoch RSI lines merged.
Further, the trend-based Fibonacci level over the early 2024 bull run provides a support level at $6.10 (23.60% Fib level).
Considering the broader market makes a comeback, a bullish continuation could reclaim the $8 and hit a new ATH at $10. However, a bearish candle in the coming days can put the $6.10 support at risk and lead to a downfall to $5.