Over the last 24 hours, Toncoin (TON) has exhibited a consolidation phase, with the price bouncing between $5.60 and $5.64. This range-bound movement reflects market indecision, but technical indicators indicate a potential breakout soon. In this review, we will explore key elements that are driving TON’s price and what traders can expect.

EMA Cluster Holds Steady Amid Consolidation

The current chart setup shows that TON receives consistent support from its Exponential Moving Averages (EMAs). The 20-period EMA sits at $5.6229, offering immediate support, while the 50-period EMA, located at $5.6166, bolsters TON’s price floor. These EMAs are closely aligned, creating a buffer zone where sellers have struggled to gain control.

The 100-period and 200-period EMAs, at $5.6113 and $5.5740 respectively, further confirm that TON is in a stable upward trend. The fact that TON has not dipped below these EMAs in recent sessions suggests that the overall bullish sentiment is still intact. This EMA cluster should be closely monitored, as a break below these levels could signal a short-term correction.

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RSI Divergence Signals Potential Upside

The RSI Divergence indicator strongly hints at what may come next. Showing a value of 3.9564, it indicates positive divergence, suggesting the price is likely to move upward following a period of sideways trading. Since RSI divergence often signals an early trend reversal, this current consolidation could mean TON is gearing up for a breakout.

The green momentum on the RSI divergence reflects buyer interest growing as TON hovers near the upper boundary of its recent range. If this bullish divergence holds, we could see a move past the resistance level at $5.65.

Key Levels to Watch

The immediate resistance level at $5.65 remains a key hurdle for Toncoin. A breakout above this point, accompanied by strong buying volume, could trigger a swift rally toward the next target at $5.70 or even higher. On the downside, if TON fails to break $5.65, it could retest support at $5.61 and $5.57, both of which have proven reliable in recent sessions.

Toncoin is in a period of consolidation, with indicators suggesting a breakout could be imminent. The alignment of the EMAs and the RSI divergence provides a solid foundation for optimism, but market participants should remain vigilant for any signs of a trend reversal. As TON approaches critical levels, it’s a waiting game to see if the bulls can push it past resistance and into new highs.