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Is Toncoin [TON] ready to rally again after the past month’s consolidation?

2min Read

A drop below $2.12 would flip the TON market structure bearishly on the H4 chart. It would also point toward the likelihood of another retest of the low of the consolidation phase on the chart

Toncoin ready to rally once again after the past month's consolidation

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • Toncoin showed a higher timeframe uptrend from late August
  • The lower timeframe price chart pointed toward a possible bullish breakout, but should traders trust it?

Toncoin [TON] bulls profited from the recent Bitcoin [BTC] surge. Since 20 October, TON rallied close to 10%. However, the higher timeframe price charts showed that the token was already trending higher.


Is your portfolio green? Check the Toncoin Profit Calculator


This HTF rally began in late August when a local high at $1.53 was flipped to support. This move saw a shift in the market structure, and TON has maintained the uptrend.

The local resistance at $2.27 saw a sharp rejection

Toncoin ready to rally once again after the past month's consolidation

Source: TON/USDT on TradingView

In mid-September, Toncoin rallied from $1.538 to $2.599 in a week, a move that measured 62%. This rally was used to plot a set of Fibonacci retracement levels (pale yellow). The past month saw TON retrace from $2.6 to $1.92.

The prices then consolidated within the $1.92-$2.16 region. The recent BTC move saw TON climb to $2.23 and signaled a potential uptrend. However, the indicators were not wholly behind the idea.

While the Relative Strength Index (RSI) continued to move above the neutral 50 on the four-hour chart, the Chaikin Money Flow (CMF) was below -0.05.

Despite the recent gains, the CMF showed significant capital flow out of the market. This suggested that TON was not yet ready for a genuine breakout and another rally. A move above $2.27 would be a good signal of firm bullish intent.

Open Interest showed bullish sentiment and gained some traction in recent days

Toncoin ready to rally once again after the past month's consolidation

Source: Coinglass

The Open Interest (OI) chart spiked wildly higher during TON’s rally to $2.6 in September. It saw a retracement with the price in early October, before bouncing higher over the past ten days. This reflected a growing bullish conviction in the market.


Realistic or not, here’s TON’s market cap in BTC’s terms


A drop below $2.12 would flip the TON market structure bearishly on the H4 chart. It would also point toward the likelihood of another retest of the $1.9 zone which marked the lows of the consolidation.

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Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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