TON technical analysis: Can it hold $4.75 and target $5.5?

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.

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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)