Following a sharp decline to $5.3 on the 9th of December, Toncoin [TON] experienced a nearly 20% surge. The price drop varied among various exchanges, with Binance showing $5.3 while Bybit recorded $4.91. Despite the liquidation cascade, the recovery on shorter timeframes has been quite impressive.
While Bitcoin [BTC] is struggling to establish support in the $101k-$103k range, the altcoin market cap has been on a notable upward trend since November. Considering the recent recovery from the Monday dip, further upticks are likely in the near future.
Toncoin Solidifies Support Around the $5 Demand Zone
Previously acting as a resistance level in both September and November, the $5.9 mark has now turned into a support zone. Although the volatility threatened to breach it on Monday, the bulls managed to bounce back effectively.
The OBV indicator has shown a consistent uptrend over the past month, signifying resilience despite significant selling pressure earlier in the week.
However, Ton bulls are facing challenges breaking past the $6.9-$7.1 resistance zone, which has held strong for the past 12–14 weeks. Sustained demand is crucial for Toncoin to embark on a prolonged uptrend towards new all-time highs.
With the RSI hovering around 53 on the daily chart, the momentum, while slower than a week ago, remains favorable for further gains.
Potential Short-term Rally Targeting $7 on the Horizon
Recent data on liquidation heatmap indicates significant concentration around $5.05-$5.15. Although tested on Monday, the prices have rebounded since then. Additionally, a liquidity pocket around $5 still persists.
A dip in Bitcoin’s price below $98.6k could trigger short-term bearish sentiment in the broader market, potentially affecting TON’s price as well.
The likelihood of a drop to $5 seems slim at the moment, especially with a liquidity pocket near $7, close to current levels. Short-term bullish price targets based on a 2-week liquidation heatmap point towards $7.05 and $7.3.
Whether the Toncoin bulls can surpass this resistance remains uncertain, but the current outlook for TON’s price in the short term appears optimistic.
Disclaimer: The opinions shared in this article are personal and do not represent financial, investment, or trading advice.