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Toncoin’s recent price activity has captured the attention of traders, with a 25% bounce observed over four days, signaling short-term bullish sentiment.
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However, the broader trend remains bearish, as a staggering 96% of Toncoin holders are reportedly underwater, reflecting significant market challenges.
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“The $3.85 resistance level stands out as a critical point where a bearish reversal could materialize,” reported COINOTAG analysts.
This article explores Toncoin’s recent price dynamics, examining the implications of a short-term bounce against a backdrop of overwhelming bearish trends.
Toncoin Forecast: Potential Rally to $3.6 Before Bearish Reversal
Recent market indicators suggest that Toncoin (TON) may see a short-term rally towards the $3.6 mark before encountering significant resistance. Analysts have noted that while Toncoin achieved a substantial bounce, the daily market structure remains predominantly bearish, indicating ongoing challenges for traders.
Understanding the Market Structure and Key Levels
A detailed examination of Toncoin’s price action reveals a series of lower highs, with the latest peak at $3.95 establishing a potential short-term price target. The MACD indicator, while currently under zero, indicates a strong bullish crossover, suggesting potential upward momentum in contrast to the prevailing bearish trend. This divergence highlights a moment of opportunity for counter-trend traders.
Source: TON/USDT on TradingView
Liquidation Heatmaps: Insights and Expectations
The analysis of liquidation heatmaps reveals critical liquidity pockets around the $3.66 and $3.9 levels. These zones are instrumental for predicting potential price retractions as traders look to exit positions in the face of imminent bearish reversals. The one-week heatmap points to the $3.2 mark as another significant level to watch for potential liquidation events.
Source: Coinglass
Strategy for Traders: Awaiting Price Action
Traders focusing on Toncoin may consider waiting for price action to validate potential moves around the noted liquidity levels. As the market navigates through the current volatility, many traders may opt for a tactical withdrawal to assess further price developments. The potential for a breakout above $3.7 could invalidate bearish expectations and prompt a shift in market sentiment.
Conclusion
In summary, while Toncoin’s recent bounce offers a glimmer of hope for traders, the overall market structure warns of potential bearish rejections around key resistance levels. Observing the interactions with $3.6 and $3.2 will be vital for future trading strategies. As always, staying informed and vigilant will equip traders with the necessary insights to navigate this challenging market landscape.
