- Toncoin has a strong bearish short-term bias.
- Traders must wait for a deviation below the lows in the range before going long.
Tonmint [TON] a tough week behind us. Telegram founder Pavel Durov was arrested in France and faces up to ten years in prison. This news had a huge negative impact on the Telegram-based altcoin.
The network also experienced downtime of more than seven hours, leading to further erosion of user confidence. However, network recovery could reduce the severity of the incident over time.
Has TON formed another range?
Source: TON/USDT on TradingView
In June and July, Toncoin formed a range whose low was at the $6.94 level. Selling pressure in late July forced prices to fall as low as $4.75, turning the $6.94 level into strong resistance.
Last month’s price action supported this idea of assortment building. The mid-range has acted as resistance over the past week. Another move towards the local low of $5.13 seemed likely.
The RSI showed bearish momentum and the OBV highlighted increasing selling pressure. The chances of a quick recovery for Toncoin were low and a move to $5 seemed possible.
Should traders short the token now?
AMBCrypto found that the cumulative delta of the fluid levels was negative, but not overwhelmingly so. This showed that the short positions in recent days were more than the long positions.
A short squeeze is possible, but unlikely in the next 24 to 48 hours.
Is your portfolio green? View the TON Profit Calculator
Although the daily chart showed the $5.13 level as a support zone, liquidity pools could drag down a TON. The $4.92-$5 zone was heavily populated with extended liquidations.
Once the price reaches this level, a recovery becomes more likely. In the meantime, traders should be wary of small price increases that chase liquidity.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer