Toncoin [TON] Price Analysis: 05 April
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice.
- A move above the bearish order block would likely see Toncoin register more gains
- The diverging Bollinger Bands suggested that another move north could be in the works
As the broader cryptocurrency market turns bullish, with Ethereum breaking past the $1,840-resistance level to hit $1,900 and Bitcoin attempting to climb above $29,200 again, Toncoin (TON/USDT) displayed mixed signals based on various technical indicators.
Read Toncoin’s [TON] Price Prediction 2023-24
In this analysis, we will delve into the inferences drawn from each indicator and how they might impact the future price movements of the asset. TON was trading at $2.29 at the time of writing, and a bearish order block on the 4-chart continued to pose an obstacle for the buyers.
This former zone of resistance seemed to be on the verge of being broken
Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. With a value of 66.3, the RSI for the TON/USDT pair was in a moderately overbought territory. This suggested that there might be a slowdown or a possible reversal in the short term, as the momentum nears overbought levels.
Bollinger Bands help traders identify potential trend reversals and price breakouts by tracking volatility. The initial divergence of the bands indicated that the TON/USDT pair may be entering a period of expansion. And, a significant price action north could follow.
On-balance Volume (OBV) is a cumulative volume-based indicator, one that analyzes the relationship between price and volume. The increase in OBV from 15 million on 28 March to 20.56 million suggested a hike in buying pressure. This hinted at the possibility of sustained price growth for TON.
Chaikin Money Flow (CMF) is an oscillator that measures the flow of money into and out of an asset. A negative CMF value of -0.05 highlighted that selling pressure is slightly dominating buying pressure. This could lead to short-term bearish momentum on the charts.
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Moving Averages – The 21-period SMA (2.25) and the 55-period SMA (2.17) for TON/USD revealed close proximity between the short-term and long-term moving averages. This close positioning suggested a potential trend reversal or breakout in the near future, as the market awaits a decisive price movement.
Moving Average Convergence Divergence (MACD) is a momentum indicator that assists traders in identifying trend strength and direction. A MACD value of 0.02, with both the MACD and Signal Line above the zero line, signalled bullish momentum for the TON/USD pair. This could result in further price appreciation in the short term.
Parabolic SAR is a trend-following indicator that helps traders determine potential trend reversals and current trend direction. With the SAR dots positioned above the price candles, the Parabolic SAR suggested a bearish trend for TON/USDT. However, traders should monitor the SAR dots closely for any potential flip below the price, signalling a bullish reversal.
Toncoin has good chances of gains if a breakout past $2.3 materializes
Considering the inferences drawn from the various technical indicators, the TON/USD pair flashed mixed signals. The RSI, OBV, and MACD pointed to potential bullish momentum, while the Chaikin Money Flow and Parabolic SAR highlighted a bearish trend. On the contrary, the diverging Bollinger Bands and the close positioning of the moving averages indicated a possible breakout in either direction.
In the context of the overall bullish sentiment across the crypto-market, traders should exercise caution and closely monitor the TON/USDT pair for any definitive trend signals. A break above significant resistance levels at $2.40 and $2.60 could present a ‘buy’ opportunity, while a break below the support levels at $2.05 and $1.85 may signal a ‘sell’ opportunity.
As the market remains uncertain, vigilance and swift response to emerging trends are essential for traders in the current climate.