Date: Wed, Jan 29, 2025, 05:42 AM GMT
Toncoin (TON), the native cryptocurrency of The Open Network (TON), has been facing a continuous correction after its impressive 300% rally in March 2024. The surge was largely driven by the success of Telegram-based mini-apps, including Notcoin (NOT).
However, since then, TON has been stuck in a downtrend, and recent market volatility has added more bearish pressure. Over the past seven days, the token has declined by more than 6%, extending its correction to 25% over the last 60 days.
On-Chain Data
According to the latest analysis by crypto expert Ali Martinez, over 240,000 TON tokens (valued at approximately $1.16 million) have been transferred to exchanges in the past week.
On-chain data from Santiment suggests that while this number isn’t massive, it still reflects the impact of the ongoing correction.
Is a Bounceback Ahead?
A look at TON’s daily chart reveals that the token has been consolidating within a descending triangle pattern since its explosive 324% rally in March 2024. The recent rejection from the descending resistance at $7.13 and a breakdown below the 200-day simple moving average (SMA) have pushed TON to a critical support zone of $4.50 to $4.84.
This level has historically acted as a strong rebound zone, meaning a bounce from here could be possible. As of now, TON is trading at $4.87 and showing resilience. If it manages to hold this support and break above the 200SMA, the next target would be the descending trendline resistance. A successful breakout from this pattern could signal the end of its bearish trend and spark a recovery.
However, if TON fails to hold this key support, further downside could be expected, with the next potential support around $3.90-$4.0.
Final Thoughts
Toncoin (TON) is at a key support point, demonstrating strong resilience, with technical indicators pointing to a potential rebound if the key support level holds. Additionally, the altcoin rally hasn’t yet begun due to Bitcoin’s dominance. However, once Bitcoin’s dominance starts to decline, altcoins are expected to rally as anticipated.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before making investment decisions.