Following a rapid decline to $5.3 on December 9th, Toncoin [TON] witnessed a nearly 20% surge. While this drop was uneven across various exchanges, hitting $5.3 on Binance and $4.91 on Bybit, the subsequent recovery on shorter timeframes has been impressive.
Although Bitcoin [BTC] is yet to solidify the $101k-$103k range as a support level, the altcoin market cap has been steadily climbing since November. Given the significant correction on Monday, there is potential for further gains.
Toncoin establishes firm support around the $5 demand area
The $5.9 level, previously a resistance zone in September and November, has now transitioned into a support level. While Monday’s volatility posed a threat to this level, the bulls have managed to stage a recovery since then.
This positive development is reflected in the OBV’s upward trajectory over the past month, indicating resilience despite earlier selling pressure. Nonetheless, the inability to breach the $6.9-$7.1 resistance zone over the past 12–14 weeks remains a concern for TON bulls. Sustained buying interest will be crucial to propel Toncoin towards new all-time highs.
On the daily chart, the RSI currently stands at 53, signaling a slowdown in momentum compared to the previous week but maintaining a bullish bias.
Short-term uptrend aims for $7 target
Data from the recent liquidation heatmap revealed a cluster of liquidation levels around $5.05-$5.15, which were tested on Monday before prices rebounded. Notably, the liquidity concentration around $5 continues to exist.
A potential dip in Bitcoin’s price below $98.6k might fuel short-term bearish sentiment across the market, potentially dragging down TON as well.
Currently, a drop to $5 seems improbable due to the presence of a liquidity pocket around $7, closer to the prevailing market rates. The two-week liquidation heatmap designates $7.05 and $7.3 as imminent bullish targets.
While uncertainty looms over whether Toncoin’s bulls can surmount the resistance zone, the short-term outlook for TON price points towards a bullish trend.
Disclaimer: The information provided is the writer’s personal opinion and should not be considered as financial, investment, or trading advice.