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Despite a bearish trend, the potential for a bullish reversal is resurfacing near the $4.65 support zone for Toncoin. Could this lead to a breakout rally towards $6?
With increased bearish pressure, Toncoin has returned to the crucial support zone around $4.65. As bearish dominance suggests a negative crossover in the EMAs, the risk of a breakdown rises.
Will Toncoin bounce back from the $4.65 support zone to fly past the overhead trendline? Let’s find out.
Toncoin Nears Triangle Breakout
The Toncoin is maintaining a declining trend in the daily chart and is under immense bearish pressure. However, despite the pressure, the crucial support at $4.65 holds the TON price firm.
The demand zone at $4.65 coincides with a descending triangle pattern. The increasing bearish influence has resulted in a death cross event between the 50-day and 200-day EMAs.
Moreover, the 100-day and 200-day EMAs are approaching a bearish crossover. This adds to the bearish signals, with the MACD and signal lines aligned in the negative territory, showing a gradual trend in negative histograms.
Overall, the daily chart for Toncoin presents an extremely bearish outlook. However, the underlying dynamics at the critical support level of $4.65 suggest the possibility of a bullish comeback.
The daily RSI line indicates a bearish divergence as Toncoin finds support near the demand zone. With an intraday gain of 0.41%, Toncoin is currently trading at $4.84, hinting at a potential bullish recovery.
Will Toncoin Reclaim $6?
As Toncoin approaches the apex of the descending triangle pattern, the likelihood of a high-momentum move increases. If broader market conditions improve after the U.S. elections, Toncoin could surpass the 20-day EMA, which aligns with the overhead resistance trendline.
According to price action analysis, a triangle breakout rally may encounter resistance near the $5.33 level before reaching the psychological mark of $6. A successful breakout could further enhance the chances of Toncoin climbing to $8.18.
On the flip side, a breakdown below $4.65 would test the $4.34 level before potentially reaching the psychological support at $4.00.