Following a significant decrease in the price of Toncoin (TON), the cryptocurrency is currently on the verge of a breakout and potential rally. The arrest of Telegram CEO Pavel Durov in France has led to a price drop of more than 25% for TON, which is now struggling to regain momentum.
TON Price Prediction
During this period of consolidation, TON has formed a bullish descending price pattern within the four-hour timeframe. It is currently in a narrow range, indicating readiness for a breakout.
Technical analysis experts suggest that TON is at a critical support level of $5.08. Over the past 20 hours, the cryptocurrency has been consolidating between the $5.1 and $5.24 levels. If TON manages to break out of this consolidation zone and descending triangle, closing a four-hour candle above the $5.30 level, there is a high likelihood of a 15% surge to $6.
On the other hand, if market sentiment remains bearish and TON closes a four-hour candle below the $5.08 support level, a significant sell-off could occur. Currently, TON’s Relative Strength Index (RSI) is in the oversold territory, indicating a potential reversal in price direction from downward to upward.
Bullish On-Chain Metrics
Moreover, data from the Sentiments’ Supply Distribution metric reveals a notable decrease in the number of wallets holding 100,000 to 1 million TON tokens, while wallets with 1 million to 10 million tokens have surged from 0 to 1.11 million since the arrest of Telegram’s CEO.
This increase in accumulation by whales indicates a potential buying opportunity amidst the price decline, suggesting that whales may view this as an ideal time to enter the market.
TON Price Performance and Open Interest
Currently, TON is trading around $5.20 and has seen a price decrease of over 2% in the past 24 hours. However, its trading volume has risen by 25% during the same period, indicating increased participation from traders and investors following the recent price drop.
Nevertheless, TON’s open interest has declined by 2% in the last 24 hours, as reported by the on-chain analytic firm CoinGlass. This decrease suggests a sense of apprehension among traders due to the prevailing bearish market sentiment.
