Journalist
Published:
- Toncoin momentum remained bullish but weakened compared to the previous week.
- Sustained demand has been seen in recent weeks, but it may not be enough to break the $7.3 and $8.3 resistance zones.
Toncoin (TON) rose almost 20% after a rapid decline to $5.3 on Monday, December 9. This drop varied between exchanges, reaching $5.3 on Binance but $4.91 on Bybit. At the bottom of the liquidation cascade, the recovery was remarkable over the shortest time frames.
Bitcoin (BTC) is yet to convert the $101,000 to $103,000 area for support. However, the altcoin’s market capitalization has been on a strong upward trend since November. After the big reset on Monday, further gains can be expected.
Toncoin finds support around the $5 demand zone
Source: TON/USDT on TradingView
The $5.9 level, which served as resistance in September and November, was flipped into support. Monday’s volatility threatened to break it, but the bulls have since recovered.
This was reflected in the upward trend of OBV over the past month. Although substantial selling was seen at the start of the week, the uptrend remained uninterrupted.
A concern for TON bulls was performance over the past 12-14 weeks. While the $4.5-$5 demand zone was vigorously defended, the $6.9-$7.1 resistance zone was not breached. Stronger demand for Toncoin would be needed to push the asset on a long-term uptrend and towards new all-time highs.
On the daily chart, the RSI was at 53. Momentum has slowed from where it was a week ago, but remained bullish.
Short-term recovery targeting $7 in sight
Source: Coinglass
Last month’s liquidation heatmap highlighted the high concentration of liquidation levels around $5.05 to $5.15. It was tested on Monday and prices have since rebounded. The pocket of liquidity around $5 was still present.
A drop in Bitcoin price below $98.6K could fuel any short-term bearish sentiment in the market and could also push TON lower.
Source: Coinglass
As things stand, a drop to $5 seems unlikely. This was due to the presence of a pocket of liquidity around $7, which was closer to current market prices. The 2-week liquidation heatmap highlighted the $7.05 and $7.3 regions as near-term bullish price objectives.
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It remains to be seen whether Toncoin bulls will manage to break through this resistance zone, but the short-term TON price prediction is bullish.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
