Toncoin (TON) experienced a significant price rally on March 15, surging from $2.90 to $3.60 following news that Telegram CEO Pavel Durov had been allowed to leave France. This 35% gain over 14 days fueled bullish sentiment. However, as the new week unfolds, TON’s price momentum appears to be fading, leading to a period of consolidation. The key question remains: will TON resume its uptrend or continue to struggle?
Toncoin’s Momentum Slows
TON’s initial surge was largely attributed to market optimism surrounding Durov’s situation. His departure from France to Dubai marked a pivotal moment, as his previous legal troubles had cast uncertainty over the cryptocurrency’s prospects. This rally also allowed TON to break out of a descending price channel, signaling a potential reversal.
However, technical indicators now suggest a cooling off in bullish momentum. The Relative Strength Index (RSI), which had initially spiked alongside the price, has since stalled. A stagnant RSI often indicates indecisiveness in market sentiment. Similarly, the Awesome Oscillator (AO) remains positive but has begun flashing red histogram bars, another signal that buying momentum is weakening.
Key Resistance and Support Levels
TON’s short-term price action hinges on critical support and resistance levels. According to analysts at B2BINPAY, the immediate resistance lies between $3.6 and $3.7. If TON successfully breaks this zone, it could turn into strong support, paving the way for an attempt at $4 and $4.6 levels. However, failure to hold above the 20-day Exponential Moving Average (EMA) could result in a bearish decline toward $2.35.
Market Conditions Will Play a Key Role
Fei Chen, CEO of Intellectia AI, believes TON’s price trajectory will largely depend on broader market trends. “Without a clear roadmap from Durov or the TON Foundation, a return to all-time highs is unlikely unless a general altcoin bull run materializes,” Chen noted.
Also Read: XRP Price Reaction to SEC Case Dismissal: Analysts Weigh In
For now, TON’s price remains in a consolidation phase. A breakout above $3.7 could fuel another rally, while a drop below the 20 EMA may lead to a deeper correction. Traders should keep an eye on overall market conditions and liquidity trends before making any major moves.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
