Toncoin (TON) Shows Signs of Breakout After Consolidating in Bullish Pennant Pattern

Toncoin (TON) is showing signs of a potential breakout after trading in a bullish pennant pattern. The cryptocurrency has been consolidating following a three-day rally

Toncoin (TON) is showing signs of a potential breakout after trading in a bullish pennant pattern. The cryptocurrency has been consolidating following a three-day rally that began on May 8, 2025.

After surging from lows of $2.31 to highs of $3.21 in a swift move, Toncoin (TON) encountered resistance around the $3.50 mark. This follows a period of consolidation following a three-day rally that began on May 8.

As the cryptocurrency attempts to break out of the pennant pattern, key technical indicators suggest that the bulls might encounter difficulties in the near term.

Despite slowing momentum, the present price action hints at a continuation of TON’s upward trend.

As the cryptocurrency attempts to break out of the pennant pattern, key technical indicators suggest that the bulls might encounter difficulties in the near term.

On-chain data reveals a substantial spike of 84% in large transactions, reaching $6.12 billion. This heightened activity among whales, often observed ahead of major price shifts, suggests that key market players are preparing for a breakout.

Moreover, liquidation data from Coinglass highlights a significant cluster of liquidations, exceeding $999,000, at the $3.66 level. This cluster could serve as a price magnet if TON manages to pierce through the current resistance.

Short-Term Technical Breakdown

Technical analysis in the short term indicates that TON is trading close to the midline of the Bollinger Bands. Support is evident at $3.21, aligning with the lower Bollinger Band and the 100-period simple moving average.

A glance at the Relative Strength Index (RSI) shows a slight pullback from overbought territory, with the indicator now at 47.64. This decrease denotes a reduction in buying pressure following the recent rally.

Meanwhile, the Moving Average Convergence Divergence (MACD) shows signs of flattening momentum. The MACD line (0.0125) remains above the signal line (-0.0284), but the histogram is visibly leveling off, suggesting a potential shift toward sideways movement.

Volume has decreased noticeably compared to the early-May rally. This reduction in trading activity may limit price volatility in the near term unless new market catalysts emerge.

Despite this consolidation, it’s worth noting that TON continues to trade above both the 100 and 200-period SMAs, which is generally considered a bullish signal for longer-term trends.

For traders keeping an eye on TON’s next move, key resistance levels to watch are at $3.38 and $3.54. A decisive break above $3.54 could generate renewed interest among buyers.

On the downside, support at $3.21 will be crucial. Failure to hold this level might expose TON to further declines toward the $3.10 area, which also happens to be the 200-period SMA.

The cryptocurrency is currently trading in a tight range, suggesting that it is at a decision point. TON requires either a strong catalyst or increased buying pressure to overcome the overhead resistance at $3.50.

If the bulls succeed in pushing through this barrier, the next target becomes the $3.66 zone, where the large liquidation cluster is evident. Breaking above this point could set off a cascade of liquidations as short positions are forced to unwind.