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Toncoin shows potential for recovery after recent price dip

Toncoin shows potential for recovery after recent price dip

GrafaGrafa2024/09/12 03:55
By:Liezl Gambe

Toncoin (CRYPTO:TON) has recently faced a minor setback after attempting to reach $6. 

Despite this retracement, several indicators suggest a potential uptrend for TON, hinting at a possible price recovery in the near future.

One of the key indicators pointing towards a bullish trend is the rising On Balance Volume (OBV), which measures trading volume to predict price movements. 

An increasing OBV typically signifies more buying than selling activity, indicating strong buying pressure. 

For Toncoin, the current upward trend in OBV suggests that buyers are accumulating the token, which could lead to a continuation of its upward movement. 

This pattern implies that the recent decline could be temporary and that the token might soon resume its previous uptrend.

Crypto analyst TheMoonCarl has also weighed in, noting that TON’s price has formed a double-bottom pattern, a technical signal often associated with a trend reversal from a downtrend to an uptrend. 

He stated, “TON is trying to break the descending resistance after forming a local double-bottom exactly in the support area.” 

This formation indicates that sellers may be losing momentum, and a breakout above the current resistance level could push Toncoin's price beyond $6.

In addition, the daily chart for Toncoin reveals a strong support level around $4.95, which could prevent a further decline below the $5 mark. 

This support zone is crucial, as it may provide a foundation for a rebound. 

The Awesome Oscillator (AO), another technical tool used to gauge market momentum, shows green histogram bars, suggesting that while the current trend is bearish, the decline might be short-lived.

Given these factors, Toncoin could be poised for a rebound, with potential targets at $6.69 and possibly reaching up to $7.61 in bullish market conditions. 

However, if TON were to fall below $5, it might test lower support levels, potentially below $4.95. 

As always, investors should remain cautious and keep an eye on market trends and indicators for further guidance.

At the time of reporting, the Toncoin (TON) price was $5.40.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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