Toncoin [TON] rallied by 13.7% in the past 24 hours after the TON Foundation announced the appointment of former VISA executive Nikola Plecas as Vice President. The market welcomed the news with a sharp price jump, pushing TON to retest the crucial $3.35-$3.5 resistance zone for the third time in five weeks. However, analysts warn that the price action may not signal a breakout just yet.
TON Trapped in Range Formation Despite Bullish Momentum
According to data from TradingView, Toncoin has been trading in a well-defined range between $2.95 and $3.5 for nearly a month, with a midpoint at $3.23. The latest upward move took TON from the range’s bottom to its top in just 36 hours, peaking at $3.7 for a stunning 26.5% gain. This performance stands out, especially as Bitcoin [BTC] struggles below $110k and most altcoins remain stagnant.
Despite the bullish price action, the abrupt rejection near the $3.5 resistance suggests a potential exhaustion of momentum. On-chain indicators reflect this mixed sentiment. While the OBV (On-Balance Volume) shows rising volume and the Awesome Oscillator hints at a bullish crossover, price action near resistance remains indecisive.
Liquidity Clusters Signal Potential for Reversal
Data from Coinglass’s liquidation heatmap shows significant liquidity buildup near the $3.6–$3.66 zone, along with another cluster around $3.2. These zones, often targeted by market movements seeking to trigger stop-losses and liquidate leveraged positions, have already been swept during the recent surge.
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This pattern raises the possibility that the move was a classic liquidity hunt. If TON fails to establish $3.5 as a solid support level, a reversal back toward the mid-range or even the lower end of the range is likely. Traders are advised to take profits and remain cautious, especially with increased FOMO-driven activity in the market.
While Toncoin’s recent surge fueled by a high-profile appointment is impressive, technical indicators and liquidity data suggest that the rally could be short-lived unless the $3.5 resistance flips into a strong support. For now, the altcoin remains range-bound, and traders should brace for potential downside in the days ahead.
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 Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
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