TON Forms A Symmetric Triangle As Bulls And Bears Plan 46% Target

On Feb 11, 2023

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Toncoin (TON) has suffered extreme volatility beginning mid-December as stiff efforts by bulls and bears kept the token price in check, consolidating between $2.51 and $2.10. Every move made by bulls was countered with an equal and opposite force by bears, and vice versa, keeping the TON price stunted for almost two whole months.

At the time of writing, TON price was trading at $2.22, up 3.92% on the last day. However, the token’s 24-hour trading volume had reduced by 22.81% as macroeconomic factors continued to weigh down on the crypto market.

After a prolonged consolidation, market players were waiting to see which direction Toncoin price would take after witnessing an illustriously challenging trading environment since last year. The price has now formed a symmetric triangle.

Macroeconomic Factors Affecting Crypto Prices

In a recent announcement at the Economics Club of Washington DC, Jerome Powell hinted at the possibility of more interest rate hikes following the rising employment figures in the U.S. In his comments, the Federal Reserve Chair said that the Fed would use the incoming data as the base for its actions, noting, “If the economy continues to show strength through higher jobs and inflation reports, more rate hikes may be needed.”

BofA expects headline inflation to accelerate to 0.44% on Tuesday, while core inflation should remain sticky/increase slightly. However – the decline in core goods (which Powell keeps bragging about) will probably come to an end soon as used car prices are accelerating again. pic.twitter.com/zCwdmFue5P
— GammaLab (@gammalab_tweets) February 9, 2023

Besides the expected rate hike, another macroeconomic force influencing crypto prices is the SEC cracking down on staking. Reportedly, the Securities and Exchange Commission (SEC) is considering a veto on retail investors engaging in crypto staking.

SEC Investigates #Crypto Exchange #Kraken over unregistered securitieshttps://t.co/feRG210Aei
— John Morgan (@johnmorganFL) February 9, 2023

Staking provides one of the most popular moneymaking approaches for users who deposit proof-of-stake (PoS) tokens to a secure blockchain network. With the SEC’s latest probe into broker-dealers and Registered Investment Advisors (RIAs), fear of a looming crackdown on staking has spread, reinvigorated by the collapse of several entities in the crypto sector since last year.

According to the SEC, its main objective is to ascertain that there are sufficient risk management and standards of care for investor protection.

The SEC said it will be examining crypto brokers and advisors to ensure adequate risk management and “standards of care.”…Read more: https://t.co/rJKGDEDy32
— webnow🌎 (@webnowcompany) February 8, 2023

The regulatory uncertainty has fueled a wave of concern across the market, with debates on the future of cryptocurrency investment in the country going around.

TON Price Forms A Symmetrical Triangle With A Possible Breakout From Either Direction

In the overly volatile TON market, token holders have witnessed sell-offs, fake-outs, and bull traps, all of which have now been consolidated in this analysis into a narrative that would make sense for Toncoin traders and investors.

As shown below, the TON price has formed a symmetrical triangle in the daily chart (below), which is a technical formation defined by two converging trendlines connecting a series of sequential peaks and troughs. It represents a period of consolidation before the asset’s price is forced to breakout or breakdown.

If the technical setup formed by the TON price pans out in the right way, investors could witness a 46.35% rally for the decentralized layer-1 blockchain. However, the price could also move in the opposite direction.

At the time of writing, the TON price was hovering around $2.2242. If bulls are able to deliver a daily candlestick close above $2.5, embraced by the upper trendline of the triangle, the price could achieve a 46.35% climb to $3.25.

TON/USD Daily Chart

TradingView Chart: TON/USD

The Relative Strength Index (RSI) had just tipped upwards to show that more buyers were coming into the market and thus supported the bullish target. Its position at 58 above the mean line and moving within the positive zone suggested that buyers still had a say in the TON price, further bolstering the positive outlook.

Notice that the RSI indicator was about to give a buy signal, which would be validated once the yellow line crossed above the signal line (line in purple). Notice also that the histograms were fading into pale red. A glance of the daily chart above proves that historically, every time the histograms faded for TON price, shifting from deep red to pale red, a deep green set of histograms followed. As such, with the current pale red outlook, the next set of histograms was likely deep green, which normally points to buyers dominating the market. This adds credence to the bullish outlook.

Downward, the lower trendline of the technical formation provided support for the TON price, bolstered by the 100-day Simple Moving Average (SMA) at $1.46 and lower due to the 200-day SMA at $1.33. These were possible zones for bulls to strategize and return to the market.

On the flipside, the Moving Average Convergence Divergence (MACD) was moving downwards to cross the mean line into the negative territory, signifying buyers were exiting the market and handing over the baton to the bears. This would set the tone for the beginning of a rally southward.

Toncoin price was also confronting resistance due to the 50-day SMA. If bulls fail to break past this hurdle, the TON price could descend lower to lose the support offered by the lower trendline. Such an occurrence could be the beginning of another sell-off that could see the price go down as much as 46.35% to validate the bearish target.

TON Alternatives

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