What you need to know:
- TON is showing strong recovery momentum, bouncing back from recent lows around $1.22 towards $1.39.
- Technical indicators point to a bullish reversal, with the RSI forming a double bottom and the MACD indicating a golden cross.
- The bullish momentum could push TON towards the $1.6 price target if it remains above the $1.42-$1.44 support zone.
Toncoin (TON) is rallying from Saturday, February 7, climbing back from early dips to $1.39, reflecting a 2.25% gain in the past 24 hours. The token previously experienced volatility, falling below $1.36 before recovering sharply during the evening trading session.
Source: CoinMarketCap
At the time of writing, the token is trading at $1.39 with a 24-hour trading volume of $213.05 million, down slightly by 3.33%, while its market cap stands at $3.42 billion, indicating steady investor interest despite short-term fluctuations.
TON eyes critical recovery after breakdown of key support
However, the crypto analyst CryptoPulse has as of Saturday February 7 shows that the token recently fell below a vital zone of $1.42-$1.46, indicating near-term weakness in the market.
But the token is currently trying to recover and reach this Support-Becomes-Resistance (SBR) zone. Traders are curious to see if $TON can re-enter this zone as this could open the doors for a possible run towards $1.6.
Source: CryptoPulse X post
Technical indicators point to a possible bullish reversal. The Relative Strength Index (RSI) has shown a double bottom formation, a common bullish signal.
At the same time, the MACD signals a possible golden cross, a technical event that typically signals a shift in momentum in favor of buyers.
At this stage, a wait-and-see strategy may be a viable option as two consecutive four-hour candles closing above $1.42 could confirm a potential long entry.
TON shows signs of recovery amid growing momentum
According to TradingView, the token is trying to recover as it has suffered a steep decline in recent weeks.
After hitting a recent low around $1.22, TON bounced back as it crossed the 20- and 50-period EMAs around $1.36-$1.38.
The widening of the Bollinger Bands indicates increasing volatility, but the price is approaching the mid-band around $1.44, which acts as resistance.
Source: Trading view
TON finds resistance at the EMA levels over the 100 and 200 periods around $1.44-$1.52, strengthening the bearish trend.
It could test $1.30-$1.25 if it fails to hold above the 0.38 level. It is essential to see if the token consolidates around the middle Bollinger Band and EMA clusters before deciding whether the rally will continue or not.
Also Read: Toncoin Sees Breakout of $2.00 After Critical Support at $1.50
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