Toncoin’s price dropped by 18.3% in July, reaching $6.65 due to a weak market. The current price movement has created a triangle shape, which may indicate a future price change.
Since last weekend, Toncoin’s price has been slow but stable above $6.5. This support level matches the lower trendline of the triangle pattern, making it an attractive point for buyers. However, with decreasing interest and pressure from the wider market, there’s a risk that this support might fail, leading to a significant price drop.
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Toncoin Price Analysis: Will the Triangle Pattern Drive a Recovery?
TTON, the native cryptocurrency of the Toncoin network, underperformed in July, even as the broader market recovered. After reaching a peak of $8.14 on July 3, the altcoin dropped 18.3% to $6.65, and its market cap decreased to $16.7 billion.
This bearish trend has caused TON’s price to consolidate, forming a triangle pattern. Over the past two months, the converging trendlines have tightened TON’s price range, setting the stage for a major breakout.
Regarding the current uptrend, the chart setup should give buyers a temporary pause to regain strength. With a daily gain of 0.76%, Toncoin’s price is showing signs of a reversal from the triangle support, aiming for a fresh breakout.
If the pattern holds, Toncoin’s price could rise by 18% to challenge the triangle resistance. After breaking out, the price might reach $10.27. During this rally, buyers could encounter selling pressure at $8.5 and $9.4, based on traditional pivot levels.
On the other hand, Toncoin’s price is still struggling to rebound from the triangle support, indicating weak buyer confidence. A recent bearish crossover between the 20-day and 50-day EMAs could increase the downward momentum for the triangle pattern.
Additionally, TON futures open interest saw a significant drop in July, according to Coinglass. The open interest fell by about 25.32%, decreasing from $353.5 million to $264 million.
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This significant decrease suggests reduced trading activity and investor interest in TON futures, indicating waning market confidence or a shift in investments to other assets.
As a result, a potential breakdown from the triangle could increase selling pressure and may cause Toncoin’s price to drop to $0.6.
Key Takeaway
The near-term trend for Toncoin remains sideways as the triangle pattern develops. With open interest declining, sellers might try to break through the lower trendline, potentially triggering a new correction.
FAQs
Toncoin Price Analysis: Will the Triangle Pattern Drive a Recovery?
Price Drop and Current Trends
TON, the native cryptocurrency of the Toncoin network, underperformed in July, even as the broader market recovered. After peaking at $8.14 on July 3, the altcoin dropped 18.3% to $6.65, and its market cap decreased to $16.7 billion. This bearish trend has caused TON’s price to consolidate, forming a triangle pattern. Over the past two months, the converging trendlines have tightened TON’s price range, setting the stage for a potential breakout.
Triangle Pattern and Demand Zone
The triangle pattern has led to a sideways movement in Toncoin’s price. The triangle support and the 100-day EMA around $6.5 create a strong demand zone. This support level matches the lower trendline of the triangle pattern, making it an attractive point for buyers. However, with decreasing interest and pressure from the wider market, there’s a risk that this support might fail, potentially leading to a significant price drop.
Trading Volume and Market Signals
Toncoin’s daily trading volume is $233.2 million, showing a 0.77% loss. Since last weekend, the price has been slow but stable above $6.5. The chart setup suggests that buyers might get a temporary break to regain strength, with a daily gain of 0.76%. The price is showing signs of a reversal from the triangle support, aiming for a fresh breakout.
Potential Price Movements
If the triangle pattern holds, Toncoin’s price could rise by 18% to challenge the triangle resistance and might reach $10.27. During this rally, buyers could encounter selling pressure at $8.5 and $9.4, based on traditional pivot levels.
Risks and Market Indicators
On the other hand, Toncoin is still struggling to rebound from the triangle support, indicating weak buyer confidence. A recent bearish crossover between the 20-day and 50-day EMAs could increase downward momentum for the triangle pattern. Additionally, TON futures open interest saw a significant drop in July, decreasing by 25.32%, from $353.5 million to $264 million. This decrease suggests reduced trading activity and investor interest, indicating waning market confidence or a shift in investments.
Key Takeaway
The near-term trend for Toncoin remains sideways as the triangle pattern develops. With declining open interest, sellers might attempt to break through the lower trendline, potentially triggering a new correction.
