Toncoin (TON) is consolidating above $7 and appears ready to make another run. Here’s a technical analysis outlining the key support and resistance levels to keep an eye on.
Bullish Trend Intact For Toncoin
Source: Trading View
In previous Toncoin analyses, we highlighted its outperformance compared to Bitcoin. After a brief dip, TON found support at $6.80, with bulls stepping in to defend the crucial 50-day simple moving average. The price formed a low of $6.79 before initiating a gradual climb. Toncoin closed above $7.20 and $7.25, even spiking past the 50% Fibonacci retracement level of the recent correction.
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Eyes on Toncoin $8.00 Resistance
Currently, Toncoin trades above a critical bullish trend line with support at $7.20. Recent price action suggests a potential short-term pullback before regaining momentum.
Immediate upside resistance sits near $7.75, followed by a major hurdle at $8.00 and the 76.4% Fibonacci retracement level. A decisive break above $8.00 could propel the price towards the $8.33 high and potentially even $8.80.
Solid Fundamentals Bolster TON Bull Case
On the fundamental front, Symbiosis recently introduced TON Bridge v1, facilitating seamless token swaps between TON and other networks. Additionally, USDt on TON surpassed $500 million in net circulation within two months, signifying continued growth for the TON blockchain.
Potential Downside Scenario
However, TON might struggle to surpass the $8.00 resistance. In that case, a drop below the $7.20 trend line support is possible. The next major support zone sits at $7.00, bolstered by the 50-day SMA.A daily close below $7.00 could trigger a bearish move, with the next key support level at $6.20. A further decline could even lead to a retest of the $5.55 support in the near future.
Overall, Toncoin exhibits bullish signals above $7. The bulls aim for a break above $8.00 to target $8.80 or even $10.00. Conversely, a pullback towards $6.00 support remains a possibility.
