TON shows early signs of a breakout, opening the door for a rally to $3.50.
Telegram’s one billion users will be able to interact with Ethereum Virtual Machine (EVM) decentralized apps (DApps) directly within the messenger following the launch of the Tac mainnet on Tuesday. This new feature could boost DApp adoption and asset inflows into the TON network as it lowers the technical barrier to entry for mainstream users.
Could Toncoin (TON) break above its overhead resistance? Let’s analyze the charts to find out.
TON price prediction
TON rose above the moving averages and is nearing the downtrend line of the descending triangle pattern.
The 20-day exponential moving average (EMA) ($2.94) has started to turn up, and the relative strength index (RSI) has jumped into the positive territory, indicating advantage to buyers. Sellers are expected to defend the downtrend line with all their might because a break above it will invalidate the negative setup. That may propel the TON/USDT pair to $3.69.
Instead, if the price turns down sharply from the downtrend line, it suggests that the bears remain sellers on rallies. That could keep the pair inside the triangle for some more time. Sellers will gain the upper hand if they sink the price below the $2.75 support.
Related: Ethereum’s ‘crucial’ breakout hints at 30% rally versus Bitcoin next
Both moving averages have started to turn up, and the RSI is in the positive territory, indicating that the bulls have an edge. Buyers will try to push the price to the downtrend line, which could pose a substantial challenge.
If the price turns down from the downtrend line but bounces off the 20-day EMA, it suggests a bullish sentiment. That increases the likelihood of a break above the downtrend line. The pair could rally to $3.40 and then to $3.50.
On the contrary, a drop below the moving averages suggests that the bulls are losing their grip. The pair may then slump to $2.90.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
