Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- TON rebounded at $1.98 and pumped 7% on 17 October.
- More longs were rekt as of press time, suggesting a reversal couldn’t be overruled.
Toncoin [TON] 7% pump on the daily trading session on 17 October could encounter a reversal and force buyers to re-focus on the short-term support at $1.98.
Read Toncoin’s [TON] Price Prediction 2023-24
The rally attempted to cross its overhead hurdle at the 50% Fib level of $2.1 at press time, but liquidation data at hand pointed to a likely price reversal.
A week ago, AMBCrypto projected that TON could extend its decline to $1.78 amidst bearish pressure. However, Bitcoin [BTC] reversed its recent losses, tipping TON to recover some lost ground, too.
Will TON’s recovery falter?
Source: TON/USDT on TradingView
A crucial confluence area existed at $1.98. The level consisted of the previous breakout level during September’s extended rally. Besides, the 38.2% Fib level and the daily bullish order block (OB) of $1.93 – $2.04 (cyan) aligned on the same price area.
The recent pullback eased at the above confluence area. If TON falters at the hurdle at 50% Fib level ($2.1), bulls could re-group at the confluence area. The bullish target will be the 50% Fib and 61.8% Fib levels.
Capital inflows improved but eased slightly at press time, as shown by the downtick on CMF towards zero. The overbought condition of the RSI wasn’t an obvious indicator of a possible reversal, but liquidation data at hand reinforced likely short-term TON losses.
More longs discouraged, but…
Source: Coinglass
How much are 1,10,100 TONs worth today?
Liquidation data from Coinglass indicated more long positions were wrecked in the past one and four hours before press time. It demonstrated that an extra short-term rally could be affected. So, a price reversal at the 50% Fib level could be likely.
Ergo, despite the impressive recovery in Futures market demand and positive market sentiment, as shown by the increase in Open Interest (OI) rates and funding rates, TON’s extended recovery could face a challenge.
Source: Coinalyze
