Toncoin (TON) is currently undergoing a retest phase in preparation for a potential bullish revival amidst a broader market pullback. Despite being ranked amongst the top 10 cryptocurrencies with a market cap of $16.74 Billion, the ongoing correction phase has caused Toncoin to slip in its market position. However, the trend reversal in TON has caught the attention of smart investors, leading to speculation about whether it will outperform XRP this year.
The recent freefall in Toncoin has raised concerns about an intense correction in the market. The failure to sustain the uptrend motion has resulted in Toncoin breaking below a long-coming support trendline, leading to a 12% decline this month. The continuous higher price rejection in daily candles signals increased downside risk for Toncoin, with the ongoing correction rally starting with a double top formation at the $8 mark. The breakdown of the support trendline has dropped TON to $6.66, with a lack of significant body formation in the last five daily candles warning of a potential supply inflow.
Despite the bearish sentiments, there are some under-noticed bullish signals in Toncoin. The Stochastic RSI lines and daily RSI line show an uptick close to the oversold boundary, with the Stoch RSI lines merged. Additionally, the trend-based Fibonacci level over the early 2024 bull run provides a support level at $6.10 (23.60% Fib level). If the broader market makes a comeback, a bullish continuation could see Toncoin reclaim $8 and hit a new all-time high at $10. However, a bearish candle in the coming days could put the $6.10 support at risk and lead to a downfall to $5.
In conclusion, Toncoin is currently in a critical phase as it navigates through a retest period to potentially ease a bullish revival amidst a broader market pullback. The recent freefall and lower price rejections have raised concerns about an intense correction, but there are some underlying bullish signals that should not be overlooked. With the support level at $6.10 and the potential for a bullish continuation if the broader market rebounds, Toncoin’s future remains uncertain but hopeful. Investors and traders should closely monitor the market dynamics and indicators to make informed decisions about Toncoin’s performance in the coming days.
