TON’s price rally – Why $6 is the next prediction
Toncoin noted a shallow retracement recently before bulls drove a recovery- $6 is their next target.
- TON has a strongly bullish outlook despite the consolidation of the past week.
- The trading volume has lessened, but that does not rule out a breakout past $5.7 this week.
Toncoin [TON] rallied 115% in March and the buyers showed few signs of stopping. The market structure was bullish across multiple timeframes.
The past week saw a lower timeframe range formation develop from $4.85-$5.6.
Analysis of the liquidation heatmap showed that it was more likely for prices to continue their rally than for a deeper retracement toward $4 to occur.
Toncoin Fib levels gave clues on why a bullish continuation is likely
Toncoin has consolidated around the $5 level over the past week. It formed a swing high at $5.68, but only witnessed a shallow retracement to $4.77.
After the hefty gains in March, the lack of a deeper retracement past the 38.6% Fib level showed the bulls were dominant.
It was a clue that suggested that the $5.68 level was not the local top, but that TON was readying itself for another push higher.
This was evident in the RSI, which remained above 60 on the 12-hour chart, signaling strong bullish momentum.
The OBV also formed higher lows throughout March to outline that buying pressure outweighed the sellers. During the recent bounce from $4.77, the trading volume was relatively low.
Hence, the possibility of a fall to $4.5 or lower was still present, though not as likely as a continuation of the uptrend. Fibonacci levels showed that $6.24 and $7.15 were the next critical resistances to watch.
Liquidation levels could beckon prices northward
Realistic or not, here’s TON’s market cap in BTC’s terms
The $4 and $4.5 levels had a high concentration of liquidation levels around them, according to Hyblock estimates. While this could attract TON prices, the $5.85 and $6.1 levels were closer to current market prices.
Alongside the clues from the price action, it was likely that TON would climb toward $6.1 before a deep retracement. A Bitcoin slump below $68k could dampen the TON bulls’ spirits.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
