Toncoin (TON) is at a pivotal moment as it faces a potential 45% correction, according to an analysis by crypto analyst Ali (@ali_charts). There are worries that the price of the token may fall even lower now that it has fallen below the crucial $4.70 support level.
As per Ali’s chart, which shows a bearish Head and Shoulders pattern, TON may see a sharp decline towards $2.60 if it is unable to regain its support.
#Toncoin needs to reclaim the $4.70 support level soon. If $TON fails to do so, a 45% correction down to $2.60 could be likely. pic.twitter.com/Jv0V47sXjQ
— Ali (@ali_charts) September 4, 2024
TON’s Pattern Signals Bearish Outlook
The analysis presented by Ali highlights the formation of a Head and Shoulders pattern on the 3-day chart of Toncoin. Traditionally, this pattern is seen as a negative indicator, suggesting that once the right shoulder completes, prices may continue lower.
The pattern’s neckline, which is at $4.70, has been broken, according to the chart. A breach of this level often suggests that the asset has lost a key area of support.
At present, TON is trading below this key level. Besides, the concern among traders is growing as the token struggles to regain the lost ground. Should TON fail to reclaim the $4.70 level, the bearish trend could extend further, aligning with the technical pattern’s typical outcome.
Fibonacci Levels Show Key Price Points
Fibonacci retracement levels are used in Ali’s analysis together with the Head and Shoulders pattern to offer further information about probable places of support and resistance.
According to the chart, the price of TON has fallen below the neckline at $4.67, which is the 0.786 Fibonacci retracement level. This failure to hold above $4.70 has led to a more bearish outlook.
Key Fibonacci extension levels suggest potential downside targets for TON. The support possibly emerge at $3.99, $3.68, and $3.28. The most extreme target lies at $2.63, a level that would mark a 45% correction from the current price.
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Downside Risks Increase
In his tweet, Ali emphasized the importance of the $4.70 support level for TON. The tweet warned that without a recovery above this point, the token could face a severe correction.
With TON trading below $4.70, eyeing these key levels is crucial. Besides, keeping a watchful eye on whether the token can recover or whether it will continue its downward trajectory toward the next levels of support.
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The post This Crypto Trader Warns of 45% Toncoin (TON) Price Correction appeared first on CaptainAltcoin.
