Toncoin bulls face tough battle – Is $3.6 just a dead cat bounce?

ambcrypto.com 16/03/2025 - 20:00 PM

Toncoin Market Overview

  • Toncoin maintained a bearish daily market structure.
  • The high volume on the recent bounce gave some hope to TON bulls.

Toncoin (TON) holders have faced challenges, with data revealing that 96% are currently underwater. However, the token experienced a 25% price bounce over the past four days.

Despite this bounce, the prevailing trend on the daily chart remains downwards. The question arises: How high can the current bounce reach? The $3.85 resistance level stands out as a potential point for a bearish reversal.

AMBCrypto analyzed relevant liquidation heatmaps to gauge TON’s future price movements.

Price Predictions for Toncoin

Predictions indicate Toncoin may ascend to $3.6 before facing a bearish reversal. The recent lower high of $3.95 from February is seen as a potential target in the coming days.

The MACD indicator remains below zero but has shown a positive bullish crossover due to rapid gains recently. However, the overarching trend stays bearish.

Recently increased trading volume propelled the On-Balance Volume (OBV) above December’s lows, instilling some hope for a bullish trend ahead.

Fibonacci retracement levels from a rally between February and June 2024 indicate that bouncing above the 78.6% level is encouraging short-term, yet resistance remains overhead. Breaching the $3.95 target is crucial for establishing a positive market structure.

Even if a breakout occurs, the $4.5 zone may pose a supply barrier, suggesting limited chances for a quick Toncoin recovery.

A one-month liquidation heatmap shows critical liquidity points at $3.66 and $3.9. These levels represent potential beginnings of a bearish reversal. On the one-week heatmap, levels at $3.2 and $3.67 should be closely monitored. Since $3.6 is nearer, it’s likely Toncoin will rise to sweep liquidity before dipping to $3.2.

Swing traders might consider waiting for this move, targeting a retracement in lower timeframes, as strong reversals frequently occur on Mondays. A progression beyond $3.7 would counter the expectation of a drop to $3.2.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.




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