As the total crypto market cap, excluding Bitcoin and Ethereum, takes a downfall over the weekend to hit $910 billion, the altcoin market has experienced heightened volatility. With the downfall, the altcoin market has shaken up, leading to increased uncertainty among traders.
Amid the turbulence, Toncoin is struggling to find support at crucial levels. With a massive drop of more than 20% this month, the altcoin marked its third consecutive bearish month since December 2024.
The sharp decline has led to a 44% drop in valuation, raising concerns over further losses. Will the rising bearish momentum push Toncoin below $3, or can bulls regain control? Let’s find out.
Toncoin Price Drops Under $4
In the daily chart, TON’s price reveals a bullish failure on February 1st, unable to sustain dominance at $4.65. This resulted in a sharp plunge to the $3.63 support level, intensifying bearish sentiment.
Following the breakdown, the altcoin confirmed a bearish conclusion to the descending triangle pattern. However, despite the downtrend, TON has now stabilized above the $3.63 support level, maintaining a sideways trajectory.
Currently, Toncoin is trading at $3.81, with minor fluctuations indicating indecision in the market. Amid this ongoing consolidation, the daily RSI line has entered a recovering rally, hinting at possible trend exhaustion.
The immediate resistance for TON remains at the 20-day EMA line, aligned with the critical $4 psychological level. A bullish breakout above this level will likely drive prices toward the $4.67 resistance level near the 50-day EMA line. However, if bears take over, closing below $3.63 will likely trigger a test of the $3 psychological support zone.
Bollinger Bands Squeeze Hints at High Volatility
Adding significance to the ongoing consolidation, Ali Martinez highlights the possibility of an imminent high-momentum move in TON. Applying the Bollinger Bands indicator on the 12-hour price chart, Ali notes a visible squeeze forming as TON consolidates.
The tightening Bollinger Bands signal increasing price compression, often preceding sharp directional movements. The highly intense squeeze on the 12-hour chart hints at a potential high-volatility move that could be a make-or-break moment for Toncoin. If bulls manage to break resistance, it could trigger a relief rally, while a breakdown might lead to further downside pressure.
