Will Toncoin remain bearish in the short-term? Assessing key levels

• Toncoin has a strongly bearish short-term bias.
• Traders need to wait for a deviation beneath the range lows before looking to go long.

Toncoin [TON] experienced a tough week. The founder of Telegram, Pavel Durov, was arrested in France and faces a 10-year jail term. This news had a huge negative impact on the Telegram-based altcoin.

The network also saw downtime of more than seven hours, which led to a further erosion of confidence from users. However, the network restoration could ease the severity of the incident over time.

Has TON formed another range?

In June and July, Toncoin formed a range whose lows were at the $6.94 level. The selling pressure in late July forced prices to fall as deep as $4.75, changing the $6.94 level into a stern resistance.

The price action of the past month supported this range formation idea. The mid-range level has acted as resistance over the past week. Another move toward the $5.13 local lows appeared likely.

The RSI showed bearish momentum and the OBV highlighted rising selling pressure. The chances of a Toncoin recovery shortly were low, and a move to $5 appeared possible.

Should traders short the token right now?

AMBCrypto found that the cumulative liq levels delta was negative, but not overwhelmingly so. This showed that short positions were more than the long ones in recent days.

A short squeeze is possible but unlikely over the next 24–48 hours.

Is your portfolio green? Check out the TON Profit Calculator

While the daily chart showed the $5.13 level is a support zone, the liquidity pools could drag TON lower. The $4.92-$5 zone was densely populated with long liquidations.

Once the price sweeps this level, a recovery would become more likely. In the meantime, traders should beware of minor price bounces that hunt liquidity.

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