Over the previous week, Toncoin [TON] has experienced a 9.13% increase in value.
A few weeks ago, such gains would have been considered significant, but the recent surge of Bitcoin [BTC] above $74k in early November has brought about a wave of extreme bullish sentiment throughout the cryptocurrency market.
While Toncoin may appear attractive as an investment due to its current price level, it has yet to see a substantial price surge.
In a bull market like the one we are currently experiencing, this could present a buying opportunity. However, stagnant price movement in the midst of a bullish market can also indicate underlying weakness.
TON Coin Price Forecast
Analysis of the Awesome Oscillator on the daily chart suggests that TON’s momentum has been bearish. Although the green bars on the histogram indicate a weakening bearish trend, the indicator remains below the zero line.
This bearish sentiment is also reflected in the market structure, characterized by a series of lower highs and lower lows observed since late July.
Furthermore, the On-Balance Volume (OBV) indicator remains below a key support level that was established several months ago, indicating a lack of significant buying pressure. A breakout above $5.92 could signal the beginning of a longer-term bullish trend.
While the 50 and 100-period simple moving averages have not yet formed a bearish crossover on the daily chart, TON’s price remains below both averages, underscoring market weakness.
Potential for Short-Term Gains in the Magnetic Zone
Examining the past three months, it is evident that the nearest cluster of liquidation levels for TON is located above the $6 mark, particularly in the $5.7-$5.9 range and around $6.2.
A breach of these liquidity zones could trigger a bearish response unless there is a significant surge in demand for TON. Conversely, there is a smaller cluster of liquidation levels around the $4.47 mark to the downside.
Disclaimer: The views expressed in this article are solely the author’s opinion and do not constitute financial, investment, trading, or any other form of advice.