TON has been shaping up interestingly, especially when focusing purely on the charts. The asset experienced a significant expansion of 300% to the upside, starting in mid-February and topping out around June. The price rallied from the $2 mark to a peak at $8, marking a huge expansion in a relatively short period.
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.
During the summer, when we last analyzed it, TON had retraced into deeper pullback territory, now trading back down into the $4.750 region, a level that aligns enough with a 61.8% Fibonacci retracement. This Fibonacci level was tested during the week of September 2nd, with the asset wicking into this key price region. That area, which is around $4.750, slightly below the 50% retracement, has been well respected and remains a key demand zone.
Current playbook
- The $4.750 level has been well-defended and is an ideal level for accumulation, especially given the price action we've seen since its retracement from $8.
- The deeper pullback into this demand zone aligns with the 61.8% Fibonacci retracement, suggesting that TON is in a bit of an accumulation phase.
Short-term trend
- On the daily timeframe, TON has been trading within a short-term bearish trend. However, the $4.750 level has repeatedly held, hinting at the formation of a wedge pattern as pressure builds up, which, as we know, has been a strong formation across the board this cycle.
Potential targets
- The key level to watch for is $4.750. This level provided the foundation for a 72% move in May, making it a key area of support moving forward.
Risk management ( if you are looking to get exposed )
Spot accumulation
- Accumulate spot near the $4.750 level, always best to first look to capitalize with spot in these promising bullish enviorments.
- This setup offers a decent risk-to-reward ratio but doesn't qualify as one of the best opportunities in the market. While it's not the top play, it remains a solid opportunity with great potential.
Leverage
- If leveraging, scaling in at $4.750 with low leverage. View like a spot position but added exposure and of course utilise stop orders to protect capital.
Cryptonary's take
TON presents an interesting technical setup, particularly with its retracement into the $4.750 demand zone. While it doesn't stand out as one of the best opportunities in the entire market, it remains a solid asset with potential, especially if the $4.750 level holds.With this level being responsible for significant moves in the past, it's worth keeping an eye on for short-term accumulation and potential upside, but with caution given the broader market and the current daily bearish trend.
While we do have a great report on this for its bullish case, we are not investing in this asset; this is purely for educational purposes. Before looking to get involved, do your own research.
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