Can Toncoin Reach $2? Understanding the Challenges Ahead

Toncoin (TON), the native token of The Open Network, has shown a positive performance recently, trading at $1.53 with a market cap of $3.77 billion. However, it faces significant hurdles at the $1.7 resistance level. This article delves into the recent performance and future prospects of Toncoin.

Key Takeaways

Toncoin is currently trading at $1.53, with a bullish trend over the last 24 hours.
The partnership between the TON Foundation and OpenPayd may have contributed to the recent price increase.
A bearish structure has been noted on the daily chart, with resistance at $1.6-$1.7.
Indicators show that sellers dominate the market, but there is potential for a rally if TON breaks past $1.7.
A significant liquidity cluster exists around $1.7, which could hinder sustained upward movement.

Toncoin finds buyers, but here's why $1.7 remains a major hurdle

Toncoin's Recent Performance

Toncoin 1-day Chart Source: TON/USDT on TradingView

Over the past day, Toncoin has experienced a 2.6% increase, now priced at $1.53. The recent partnership with OpenPayd, announced on December 16, enhances the ecosystem’s fiat infrastructure, potentially contributing to the minor rally seen in Toncoin's price.

Multi-Timeframe Analysis of Toncoin

Examining the daily chart reveals a bearish swing structure, highlighted by a drop from $2.16 to $1.45. While there was an attempt to shift to a bullish trend, it was unsuccessful when hitting the $1.6-$1.7 resistance zone (indicated by the white box).

Even though the price failed to break through this supply zone, the Accumulation/Distribution (A/D) indicator showed that buyers had a slight advantage in the short term. However, the Relative Strength Index (RSI) remained below the neutral mark of 50, with the Stochastic RSI trending downwards, indicating that sellers still have the upper hand.

If Toncoin successfully breaches the $1.7 level, it could then rise to test key Fibonacci retracement levels at $1.89 and $2.01.

Toncoin 1-hour Chart Source: TON/USDT on TradingView

On the hourly chart, a short-term supply area has emerged between $1.56 and $1.58. Although some buying strength and upward momentum were noted, the price faced rejection at resistance levels, indicating that bearish control persists both in the short and long term.

Possible Bullish Scenario

For Toncoin to follow a bullish trend, a breakout above the $1.7 resistance zone is necessary. This optimistic outcome would require strong market momentum, bringing more investment into Toncoin and potentially pushing its price beyond $2.

Liquidity Considerations for Traders

Toncoin Liquidation Heatmap Source: CoinGlass

A bounce back to $1.7 in the short term is feasible; however, maintaining momentum beyond this level will be challenging due to a significant cluster of short liquidations at $1.7. This position may pull prices down to that level and possibly even as high as $1.8.

Considering the current market sentiment and structural analysis on the daily timeframe, it’s likely that Toncoin may face a bearish reversal around $1.7 instead of achieving a sustainable bullish trend.

Final Thoughts

Disclaimer: The information provided above is not financial, investment, trading, or other types of professional advice and represents the opinion of the author.