- Toncoin’s price surged by 8% in the last 24 hours, suggesting a bullish reversal.
- TON trading volume surged by 277% indicating buying momentum.
Toncoin (TON) is currently exhibiting signs of a possible bullish reversal as buyers come in at key support zones in an effort to reclaim the market following a long-lasting bearish trend. As per CMC data, the altcoin is trading around the $2.76 mark, and the bulls are trying to hold the major support area and prepare to break out of the 50-day exponential moving average.
The technical environment is a mixed, but gradually more encouraging one. Toncoin is also far below the 200-day EMA at $3.6622, and it means that the long-term trend is still bearish. Nonetheless, the immediate attention is drawn to the 50-day EMA at $2.9949 that has been serving as a major resistance point. The price action indicates that the bulls are building up strength to break this important technical resistance where buyers are always coming in at the lower support levels.
The momentum indicators are showing a positive outlook on the possible upward trend. The RSI has risen to 52, which places it above the 14-period simple moving average line, which is a conventional indicator of increasing bullish momentum. This reading implies that the selling pressure is weakening and buyers are starting to take control of the price action.
What’s Next For Toncoin?
Source: Tradingview
The MACD indicator gives further evidence of the developing technical set up. The MACD line has just crossed bullishly above the signal line and the histogram has changed to green color which shows that positive momentum is gaining. The fact that bullish indicators are congruent on several timeframes indicates that Toncoin might be gearing up to make a more significant recovery move.
The social sentiment has also turned to the positive side which offers a basic support to the technical recovery. This market perception change is usually a precursor to large price changes because positive market sentiment can bring more buyers and produce self-reinforcing momentum.
In terms of support and resistance, TON has already created a strong base with support prices of $2.7613 and $2.3773. These levels have been tested and have been found to hold selling pressure and offer the buyers good entry points. The nearest resistance point is still at the price of $2.9949 or the 50-day EMA.
If bulls manage to clear the 50-day EMA, this would be a huge technical breakthrough and could see the way open to a bigger recovery to the 200-day EMA at $3.6622. A combination of increasing momentum indicators, bullish sentiment and robust support levels indicate that Toncoin could be gearing up to experience a significant recovery in the short term.
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