Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- TON is in a nearly neutral market structure throughout all timeframe charts
- TON’s correction retested a key value area that could offer a strong rebound
Since the end of January, The Open Network’s TON, has consolidated in the $2.2 – $2.6 range. Its price action had at press time retested an area of key value that could lead to the market’s recovery. If overall market sentiment improves, a pullback on this key area could provide new buying opportunities and additional gains.
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Can $2.3, the key value of $2.3, boost recovery?
Source: TradingView – TON/USDT
The price rejection at the supply area (red) of $2.6 on the daily chart forced TON to correct. TON had retested both the demand zone (green), and the high-value (HVN), of the Fixed Range Valu Profile (FRVP) at press time. The FRPV’s point of control (POC), red line, of $2.3 had the highest traded volume and could offer a strong recovery if pullback retests it.
If the pullback tests the POC at $2.3, bulls could be eligible for new buying opportunities at $2.3. A retest in the demand area ($2.16-$2.23) would offer secondary buying opportunities. The target would be the bearish order block of $2.6 in the supply zone – A 20% potential hike with a risk-to-reward (RR) ratio of 1:4.
The bullish thesis will be invalidated if the price falls below $2.1183. A downswing like this could lead to shorting opportunities at $1.9518.
The RSI, Relative Strength Index, seemed to be hovering around the neutral line as well. The OBV (On Balance Volatility) fluctuated at the same time. This suggests a neutral structure which could prolong the price consolidation if it continues.
TON reported a rising Mean Coin Age
Source: Santiment
Santiment reported that TON saw a rising 90-day Mean Coin Age. This indicates a large-network accumulation. This indicates a high probability for a bullish rally that could see TON move towards the supply zone.
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Also, investors were positive about the digital asset’s weighted sentiment. TON saw a sharp increase in daily active addresses. This could increase trading volumes and buy pressure over the long-term.
However, dismal job reports on March 10 could deepen the market’s bearish sentiment and push TON into an extended correction. Particularly if the bulls fail to defend demand zone.