Toncoin [TON] has gained 9.13% over the past week.
These numbers would have been respectable a few weeks ago, but Bitcoin [BTC]’s breakout above $74,000 in the first week of November sparked extreme bullish sentiment across the market.
Since Toncoin has not risen yet, now seems to be a good buying opportunity.
Since this is a bull market, this may be true, but generally speaking, a lack of movement while most other assets are bullish can also be a sign of weakness.
Toncoin Price Prediction
The Momentum Oscillator on the daily chart shows that TON’s momentum has been bearish. The green bars on the histogram indicate that the bearish momentum is fading, but the indicator is still below the zero line.
This can also be seen from the price action. The market structure is bearish, as can be seen from the series of lower highs and lower lows that have occurred since the end of July.
OBV is also below the support seen a few months ago. This shows that buying pressure is yet to take control. A breakout above $5.92 will be the first sign of long-term bullishness.
The 50- and 100-period simple moving averages on the daily chart have not yet formed a bearish crossover, but TON is trading below both lines. This is another sign of market weakness.
Magnetic zone could drive short-term gains
The 3-month lookback period shows that TON’s recent liquidation level cluster is located above the $6 mark. Specifically, the $5.7-5.9 area and the $6.2 area are two key resistance levels.
Unless demand for TON increases significantly, the sweep of these liquidity pockets could lead to a bearish reaction. To the south, the $4.47 level has a smaller cluster of liquidation levels.
