From a long-term perspective, the weekly chart presented a strongly bearish outlook for TON. There seemed to be an increasing likelihood that the asset could trend lower, with the potential to test new lows if press time conditions persisted.
At the time of writing, TON was trading within a descending channel, a pattern often interpreted as a consolidation phase within a broader downtrend. Price action revealed that the asset has been in a sustained decline for over a year. It has consistently formed lower lows, particularly since June 2024, indicating persistent selling pressure.
Momentum indicators seemed to support this bearish view. The Relative Strength Index (RSI), which measures the speed and magnitude of price movements, was in the lower range between 50 and 30. This positioning was indicative of ongoing selling pressure. If the RSI drops below 30, the asset would enter oversold territory, which could signal a potential short-term rebound as selling exhaustion sets in.
An oversold condition does not necessarily indicate an immediate reversal, but it increases the probability of a temporary price recovery as buyers begin to re-enter the market.
In the shorter timeframe, TON was trading within a similar downward structure. The bearish narrative was intact too. The Bull-Bear Power indicator showed that sellers have been dominant, as reflected by the prevalence of a red bar on the chart.
Historically, red bars on this indicator have aligned with periods of price decline, while green bars have coincided with upward movements. In the event of a short-term rally, price could attempt to move towards key resistance levels, which are typically marked as target zones on the chart – Specifically $1.48, $1.95, $2.32 and $3.17.
However, any upside will be vulnerable unless supported by stronger market participation.
