Toncoin navigates a price drop, with traders eyeing a key engulfing candle support. Will it hold, or will bears take over? Let's dive into the analysis.
Toncoin's Price Wobbles: Engulfing Candle Holds the Key?
Toncoin (TON) is experiencing some turbulence, and all eyes are on a specific technical pattern: an engulfing candle. This pattern, along with key support and resistance levels, is shaping TON's near-term destiny.
The Engulfing Candle: A Battleground for Bulls and Bears
Remember that big green engulfing candle from June? Well, its bottom, around $2.68-$2.73, is now a critical support zone. CryptoChiefs on X (formerly Twitter) pointed this out, and it's a level many traders are watching closely. After a mid-June dip, TON bounced off this level, but since then, it's been stuck in a range between $2.73 and $2.90.
Buyers have tried to push the price above $2.90 multiple times, but sellers keep pushing back. A recent red daily candle confirms sellers are still in control. Unless TON can close above the $2.91–$2.93 range, the overall structure remains bearish.
Trend Analysis: Lower Highs and Lower Lows
Zooming out, the broader trend isn't exactly screaming "bull market." TON is still making lower highs and lower lows, which is textbook downtrend behavior. Any short-term bounce is likely just that—short-lived. The move up after June 22nd looked promising initially, but it didn't last. As long as the price stays below that rejection zone around $2.91, it's tough to say the trend has shifted.
Key Price Zones: Where's the Support?
That shaded area between $2.68 and $2.73 is the main zone to watch. It was the base of the bullish engulfing candle, so it might act as support again. If TON dips into that zone, traders will be watching closely to see if buyers step back in. A strong reaction could lead to another short-term bounce. But if it breaks down, the next likely support could be around $2.55 or even $2.42.
Analyst Insights and Price Predictions
Crypto analyst Nehal has identified four critical price zones using Glassnode data. These zones represent areas where large concentrations of Toncoin are held by investors:
- $2.01–2.05 (1.32B TON)
- $2.18–2.22 (535M TON)
- $2.91–2.98 (863M TON)
- $3.83–3.87 (261M TON)
These levels often influence future price movements by creating support or resistance. DigitalCoinPrice is quite bullish, predicting TON could exceed $6.29 by the end of 2025. Changelly offers a more varied perspective, forecasting TON could reach as high as $11.17 by the end of 2024, but a more conservative $3.61 and $3.80 for June 2025.
Final Thoughts: Keep an Eye on That Candle!
So, what's the takeaway? Toncoin's price action is at a crucial juncture. The engulfing candle support is a key level to watch. If it holds, we might see another bounce. If it breaks, brace for further downside. Either way, it's going to be an interesting ride. Buckle up, crypto enthusiasts, and let's see where TON takes us next!
