After a significant drop in the price of Toncoin (TON), it is now poised for a breakout and potential growth. Since Telegram CEO Pavel Durov was arrested in France, the TON price has fallen by more than 25% and is currently struggling to gain traction.
Price forecast
Amid ongoing consolidation, TON has formed a bullish downward price pattern on the 4-hour timeframe. It is currently in a tight zone and is poised for a breakout.
According to expert technical analysis, TON is at a critical support level of $5.08. It has been consolidating in a tight range between $5.1 and $5.24 for the past 20 hours. If TON breaks this consolidation zone and the descending triangle and closes the 4-hour candle above $5.30, there is a high chance that it can soar by 15% to $6.
Meanwhile, if sentiment remains bearish and TON closes the 4-hour candle below the $5.08 support level, we could see a massive sell-off. Currently, TON’s Relative Strength Index (RSI) is in oversold territory, indicating a potential price reversal from down to up.
Bullish indicators in the chain
Additionally, Sentiments’ supply distribution metric suggests that the number of wallets holding between 100,000 and 1 million TON tokens has dropped significantly. Meanwhile, wallets holding between 1 million and 10 million tokens have skyrocketed from 0 to 1.11 million since Telegram’s CEO was arrested.
This significant whale accumulation points to a potential buying opportunity amid falling prices and suggests that whales may see this as an ideal time to buy.
TON Price Dynamics and Open Interest
At press time, TON is trading around $5.20, and its price has fallen more than 2% in the last 24 hours. Meanwhile, trading volume has increased by 25% over the same period, indicating increased participation from traders and investors amid the recent price decline.
However, TON's open interest has fallen by 2% over the past 24 hours, according to network analytics firm CoinGlass. The decline points to potential fear among traders due to bearish market sentiment.
