Toncoin (TON) Price Analysis: Bullish Phase Yet to Begin Despite 22% Rebound

Toncoin Price Analysis

Toncoin price rose as high as $5.83 on Aug 7, reflecting a 22.13% rebound from the historic lows recored on Monday. Analysis of current market indicators hints at a potential retest of the $6.50 resistance level within August.

Toncoin Rebounds 22.13% as Bull Return

In the aftermath of the recent crypto market turbulence, marked by rapid liquidations. Having delivered a shaky performance in late-July, bears further tightened their grip as Toncoin emerged one of the most adversely affected high-cap altcoins during the market crash on Monday Aug 7.

Particularly, layer-1 Proof of Stake (PoS) assets have seen diminished demand subsequent to the Ethereum ETF’s approval. The extended waning of buying interest significantly eroded TON’s critical support levels, culminating in sharp declines during the market turmoil.

More so, due to Toncoin’s strong performance in H1 2024, many investors are holding significant unrealized gains, making TON investors likely to sell larger number of coins when the broader market sentiment flips negative.

Examining the chart above reveals that TON’s price plummeted by 30.68% from August 1 to August 5. Concurrently, the global altcoin market (TOTAL3) experienced a similar contraction over the same 4-day period. This discrepancy underscores that Toncoin’s depreciation was substantial.

When a prominent asset such as TON underperforms relative to the broader market, it typically signals that the asset is undervalued, largely driven by an influx of liquidated leveraged positions. This scenario frequently attracts astute traders seeking to exploit the asset’s rebound potential. The TON/USD chart evidences preliminary indications of this trend.

Since the August 5 bottom, Toncoin’s price has rebounded by 22.13%, reaching $5.45 as of August 7. This differential suggests that investors are keenly acquiring TON post its new 2024 low on August 5, positioning it to outperform the market average as the recovery phase gains momentum.

Toncoin Price Forecast: Steady Upswing toward $6.50

Toncoin (TON) price is currently hovering above $5.40, around the 23.6% Fibonacci retracement level and the pivot point, indicating a lean bullish outlook. The price has bounced off the $2.43 support level and is heading towards the 50% Fibonacci retracement level at $2.85.

A break above the 50% Fibonacci level could see TON test the 61.8% Fibonacci level at $3.07, which coincides with the Resistance 1 (R1) pivot line. If the price can close above $3.07, it could lead to a further rally towards the Resistance 2 (R2) pivot line at $3.25.

On the downside, if TON fails to hold above the 23.6% Fibonacci level, it could retest the Support 1 (S1) pivot line at $2.62. A break below $2.62 could see TON test the Support 2 (S2) pivot line at $2.41.