Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.
Market context
TON has been a relatively uncorrelated asset this cycle, consistently forming higher highs before selling off due to market-wide factors, such as those we saw around the start of August and from late June onwards.
Despite this, TON held up above the $6.2 and $6.7 levels for a while. These levels were previously identified as range tops, and we saw that the price respected them well for a significant period.
With TON’s performance, especially with a 900% rise, it’s natural that early holders took large profits, particularly around the $7.4 level. It’s common to see profit-taking after such aggressive moves, followed by some bleed-off as capital rotates into other assets. That’s what we’ve seen happen as TON retraced, We have seen this in many strong perfroming assets this cycle if a similar print on high time frames.
Currently, TON has pulled back into the $4.75 region, which was tested in March, May, and again in August. We saw a deviation from this level in September, and there’s a possibility of an inverted head and shoulders forming around this $4.75 zone.
Playbook
We’re now seeing a short-term range top around $5.4. Unless we get a break and close above this level, we could see TON come down again to retest the $4.75 level, which may complete the formation of an inverted head and shoulders pattern.
Key levels
- $5.4 (short-term range top)
- $4.75 (key support level and potential formation of inverted head and shoulders)
- $5.5 (build a spot position between $5.5 and $4.75)
Cryptonary’s take
TON presents a lot of opportunities. While it’s not in our CPRO picks or an asset we hold, we’ve conducted a thorough report showing its upside potential. Building a position between the short-term range top of $5.5 and the support level at $4.75 for a spot hold would likely be the best current strategy.
