After a period of consolidation, Toncoin (TON) is amassing bullish momentum, setting the stage for a potential breakout as key resistance levels are approached.
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TON has recently traded within a bullish pennant, testing resistance at $3.50 after a three-day rally that began on May 8.
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A $999K liquidation cluster exists at $3.66, potentially triggering a significant breakout rally should resistance be breached.
Toncoin (TON) prices have exhibited a promising bullish pennant pattern, indicating a potential continuation of the prevailing uptrend. Following a three-day bullish run starting May 8, the altcoin is currently encountering resistance at the key level of $3.50.
However, there are signs that momentum is tapering off as the asset struggles to breach this crucial resistance level. While a breakout above $3.50 could pave the way for further gains, the bulls appear to be faltering just below this critical zone.
Source: TradingView
Whale Activity Sparks Bullish Signals
Interestingly, while the price remains stalled, on-chain data indicates increased accumulation activity. Currently, large transactions for TON have surged by 84%, totaling approximately $6.12 billion.
This spike in activity typically suggests whale or institutional involvement, often serving as a precursor to significant price movements. Increased transaction volume indicates that key players might be positioning themselves for an imminent breakout.
Liquidation Cluster May Act as Rocket Fuel
Adding to the bullish narrative is Coinglass liquidation data.
At the $3.66 level, over $999K in liquidations are clustered, just above the current resistance, creating a potential price magnet that could drive prices higher.
Should TON successfully break above $3.50, it may trigger a wave of liquidations, further propelling the price upwards as traders caught in short positions are compelled to buy back into TON.
Source: Coinglass
What’s Next for TON?
For Toncoin (TON) bulls, the immediate focus is on closing above the $3.5 resistance level. Should this level be surpassed, the next target would shift to the $3.66 region.
The combination of a bullish pennant formation, increased whale accumulation, and potential liquidation events all points to a possibly bullish trajectory. However, until a breakout occurs, the market may continue to experience consolidation.
Conclusion
In summary, Toncoin’s current trajectory presents an intriguing outlook for traders and investors. Key resistance levels, heightened whale activity, and existing liquidation clusters suggest that a significant price movement may be on the horizon. Traders should remain vigilant for further developments that could confirm bullish intentions.
