Toncoin (TON), a cryptocurrency related to the popular Telegram platform, has increased 34.50% since the beginning of the month to reach a new high at $8.33. However, due to a combination of bearish catalysts, it is now at risk of a sharp correction for the remainder of the month.
TON price is almost reaching the overbought zone
Toncoin's ongoing rally has pushed its daily relative strength index (RSI) to 67.87 — about two points below the overbought threshold of 70. This signal often precedes pullbacks Strong price of TON
Another bearish signal comes from the fact that TON price is often rejected by a multi-week horizontal resistance line every time it is approached. If a correction occurs, the next downside target could be the confluence of support consisting of the ascending trendline and the 50-day exponential moving average (red) at around $6.55 .
In other words, TON could drop 20% by the end of June.
