Toncoin Faces 3.2% Drop as Bearish Pattern Emerges

Crypto analyst Ali has recently posted a technical chart on X, indicating a bearish outlook for Toncoin ($TON). The chart highlights a descending triangle pattern, a widely recognized signal in technical analysis that often precedes a downward price movement. According to the analysis, $TON could potentially drop to a support level of $1.90, sparking discussions among traders.

The descending triangle pattern, characterized by lower highs and a flat support line, is typically bearish. This pattern has been shown to have a 68% accuracy rate in crypto markets, according to a 2023 Journal of Finance study. This aligns with Toncoin’s current trajectory, which has seen a 3.2% price decline over the past 24 hours.

Toncoin, the native token of The Open Network (TON), plays a crucial role in transaction fees, staking, and governance. Despite its utility in decentralized applications (dApps) and a long-term growth forecast of 323.28% by CoinCodex, projecting a price of $79.95 by 2050, short-term bearish signals cannot be ignored. The $1.90 target contrasts with a one-month prediction of $2.12 from CoinCodex, underscoring the cryptocurrency’s inherent unpredictability.

Traders are advised to monitor volume trends and key moving averages, such as the 50-day Simple Moving Average (SMA), for confirmation. While staking opportunities on TON may offer some resilience, the descending triangle pattern suggests caution. As the market reacts, Ali’s analysis serves as a critical lens for investors navigating Toncoin’s volatile landscape in the coming days.