Toncoin (TON) price is in the process of breaking above long-term resistance. If successful, it could increase sharply in the near future.
Toncoin (TON) price has been falling since hitting an All-Time-High at $2.9 in December 2022. The move sent the price down to as low as $0.9, confirming the $1.2 zone. as support (blue arrow). The weekly candle reacting to the $1.2 area has a very long lower wick, signaling strong buying pressure at this level.
Indeed, after several weeks of consolidation, TON price created a morning star pattern at this support area (blue ellipse) and has been moving higher ever since. This is a bullish pattern, often appearing at the end of a downtrend.
Currently, it is in the process of breaking above the descending resistance line, which has been in place since the ATH level.
The weekly RSI broke above the resistance line and is above 50, signaling that the bulls have the advantage. Also such breakouts in the RSI often lead to similar breakouts in price action.
Therefore, the price is likely to break above this resistance line and rally to the next resistance area at $2.6.
TON/ USDT weekly chart | Source: TradingView
Technical analysis from the daily chart suggests a short-term correction could happen soon. This is because the daily RSI has entered deep into the overbought zone.
Additionally, TON price is being rejected by the $2 horizontal resistance area, formed by the previous support area and the 0.5 Fib retracement level.
Therefore, TON price is likely to correct towards the previous resistance zone at $1.7 before continuing to rise.
Daily TON/ USDT chart | Source: TradingView
The most likely technical outlook suggests that TON price will continue to increase in the near term. However, a short-term correction to $1.70 could occur before it does so.
You can XEM the coin prices here .
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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According to Azcoinnews
