HomeNewsDouble Top Formation: What This Means for Toncoin Traders

Double Top Formation: What This Means for Toncoin Traders

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  • Toncoin has potential even if the market is sending conflicting signals.
  • High value transactions raise investor interest and network resilience.

This week’s cryptocurrency market was a roller coaster; once the US SEC approved the spot ETH ETF, it first sprang to life. However, later on, Bitcoin-fueled market declines increased general uncertainty.

Most of the big altcoins, like Toncoin (TON), moved sideways. As of right now, the Toncoin price is $6.41, slightly up 0.98% over the last 24 hours and 0.18% over the previous seven days, as per CoinMarketCap.

Bearish Reversal and Double Top Formation 

A bearish reversal from the $7.5 resistance level on May 11th sent Toncoin down 20% to the $6 psychological support level. This indicated the development of a bearish double top pattern by being the second reversal from the same resistance in five weeks.

Should this pattern continue, sellers may force a 27% decline that would put the neckline support at $4.7 under pressure.

Source: Trading View

Even with the bearish indications, TON’s price is moving laterally at the moment, looking for support at $6.2 in the midst of market uncertainty. The altcoin has increased by 4% in the previous 48 hours on a possible reversal from this support level, and its current trading price is $6.45.

As investors constantly monitor to see if the corrective trend continues or if buyers can counterattack at the $6 level, this stability is essential.

High-Value Transactions Surge

Joao Wedson of CryptoQuant reports that during 2024, high-value transactions on the TON Network have increased significantly, with on-chain volume dominated by transactions over $1 million.

Source: Crypto Quant

This tendency shows an increase in network activity and robustness generally as well as increasing interest from whales, investors with significant resources.

Effect of Market and Port Speculations at Binance

As ETHNews pointed out, Binance has opened a new Toncoin (TON) port, which has sparked rumors of a possible listing. This advancement can draw in more investors and strengthen TON’s market position even further.

When the daily Relative Strength Index (RSI) slopes above the midline (50%) it suggests a neutral to bullish mood. Traditional pivot levels indicate overhead supply pressure at $8.8, followed by $10, with Toncoin maybe going into a price discovery mode.

The negative thesis would be refuted and $8.8 will be the next immediate target if the bullish reversal is able to overcome the $7.5 resistance. Let’s see.

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Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: info@ethnews.com Phone: +49 160 92211628