Toncoin (TON) Shows Early Signs of Consolidation After Notable Rally

Toncoin (TON) is showing early signs of consolidation after a notable rally in early May. The cryptocurrency recently touched a high of $3.54 but has since retraced

Toncoin (TON) is showing early signs of consolidation after a notable rally in early May. The cryptocurrency recently touched a high of $3.54 but has since retraced, now trading at around $3.29. Technical indicators suggest a pause in bullish momentum, raising questions about TON’s next move.

As seen on the 4-hour chart, Toncoin is currently trading near the midline of the Bollinger Bands, with support building around $3.21. This level closely aligns with the lower Bollinger Band and the 100-period simple moving average (SMA), suggesting it may act as a short-term floor.

On the upside, resistance remains strong near $3.38 and $3.54, the latter being a recent local high. A clean break above $3.54 could trigger renewed bullish interest and open the door to further gains. However, failure to hold above $3.21 might shift sentiment bearish, exposing the $3.10 level tied to the 200-period SMA.

The Relative Strength Index (RSI) has pulled back from overbought territory and now sits at 47.64. This decline suggests that buyers are cooling off after a strong run. Meanwhile, the RSI’s moving average at 55.15 could present resistance on any short-term rebound attempts.

The Moving Average Convergence Divergence (MACD) shows the MACD line (0.0125) still holding above the signal line (-0.0284), but the histogram is starting to flatten. This hints at waning momentum and a potential shift toward sideways price action unless a new catalyst emerges.

While Toncoin remains above both the 100 and 200-period SMAs, generally a bullish signal, short-term momentum has clearly stalled. Traders and investors should watch closely for a decisive move above $3.38 or a breakdown below $3.20 to gauge the market’s direction.

Volume has tapered off compared to the early-May rally, which may limit volatility in the near term. A new surge in buying interest would likely need to be supported by positive fundamental news or a broader market uptrend.