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Technical Analysis

Toncoin (TON) price prediction today: Is $5.369 the next target?

Published: Oct 31, 2024
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Today, the price prediction for toncoin (TON) highlights key support at $4.75 and potential breakout resistance at $5.369. Can TON’s strong demand zone push prices higher?

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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 continues to play out as anticipated, respecting the levels we previously marked out. As we noted in our last analysis, TON is one of the more resilient assets this cycle, showing relative independence in its price action. Despite the market-wide sell-off during August and late June, TON held up above $6.2 and $6.7 for a solid period.

These levels acted as consistent range tops before we saw a natural bleed-off, following a 900% run that led to substantial profit-taking. The $7.4 level proved pivotal, where many early holders likely exited, causing the pullback we identified would likely happen as capital rotated.

Currently, we've seen TON retrace back to the $4.75 region, tested multiple times this year in March, May, and August. A deviation from this level occurred in September, and now we see a well-defined inverted head and shoulders pattern shaping up at $4.75. This setup shows that demand is strong here, reinforcing $4.75 as a significant accumulation zone, especially as TON hovers just under the 50% Fibonacci retracement level from $2 to $8.20.

1. TON-USDT weekly chart showing inverted head and shoulders pattern, key support at 4.75, and potential breakout setup.

Playbook

Short-term range top and key accumulation zone

As we called out, TON met resistance around $5.369, the short-term range top we previously marked. It rejected here, then pulled back to $4.75, where demand has repeatedly shown up. This range top and the $4.75 level create a solid accumulation framework, especially with the inverted head and shoulders pattern forming here. If you're a TON holder or interested in a position, this is the area to watch closely for entries.

Breakout setup and bearish channel

TON has been trading in a bearish channel, with lower highs and lower lows over the last few months. The last lower high formed at $6 on September 27, underscoring this channel's hold. The ideal move here is a breakout from both the channel and the range top. A break above $5.369, followed by a retest, would indicate strong potential for upside. Such a setup would confirm that the price has reclaimed the range top, adding confirmation for potential upside.

Retest and potential move higher

A clean breakout above $5.369 would ideally be followed by a retest, which we'd want to hold for further upside moves. A successful retest around this level could signal a shift in momentum, with the price aiming to clear the bearish structure. This structure and strategy align well with how TON has respected key levels throughout its cycle.

Key levels

  • Upside Target: $5.369 - the short-term range top to break.
  • Key Support: $4.75 - a consistent demand level, solidifying as accumulation territory, especially with the inverted head and shoulders pattern.

Cryptonary's take

TON's price action has lined up perfectly with our expectations. While TON isn't in our CPRO picks, our prior analysis identified this accumulation zone between $5.5 and $4.75 as optimal for a spot hold. Breaking out from $5.369 and retesting the bearish trendline would mark a high-quality setup, particularly given TON's uncorrelated nature. For TON holders or those considering a position, building within this range remains one of the most strategic plays in the current cycle.

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