After a massive price drop in Toncoin (TON), it is currently poised for a breakout and a potential rally. Since Telegram CEO Pavel Durov got arrested in France, TON price has experienced a price drop of over 25% and currently struggling to gain momentum.
TON Price Prediction
Amid this ongoing consolidation, TON has formed a bullish descending price action pattern in the four-hour time frame. It is in now a narrow zone and is ready for a breakout.
According to the expert technical analysis, TON is at a crucial support level of $5.08. For the last 20 hours, it has been consolidating in a tight range between $5.1 and $5.24 level. If TON gives a breakout of this consolidation zone and descending triangle and closes a 4-hour candle above the $5.30 level, there is a high possibility it could soar by 15% to $6.
Meanwhile, if sentiment remains bearish and TON closes a 4-hour candle below the support level of $5.08, we may witness a massive sell-off. Currently, TON’s Relative Strength Index (RSI) is in the oversold territory indicating potential price reversal from a downward to upward.
Bullish On-Chain Metrics
Additionally, the Sentiments’ Supply Distribution metric suggests that the number of wallets holding 100,000 to 1 million TON tokens has significantly declined. Meanwhile, the wallets holding 1 million to 10 million tokens have skyrocketed from 0 to 1.11 million since Telegram’s CEO was arrested.
This significant surge accumulation by the whales indicates a potential buying opportunity amid a price decline and suggests that whales might consider this a perfect time to buy.
TON Price Performance and Open Interest
At press time, TON is trading near $5.20 and has experienced a price drop of over 2% in the last 24 hours. Meanwhile, its trading volume has increased by 25% during the same period indicating higher participation from traders and investors amid the recent price decline.
However, TON’s open interest has dropped by 2% in the last 24 hours, according to the on-chain analytic firm CoinGlass. This decline indicates potential fear among traders due to bearish market sentiment.
