Toncoin (TON) experienced a 25% price bounce in the past four days, but its bearish daily market structure remains intact. The high trading volume on this recent bounce has given some hope to TON bulls, but the severity of the downtrend is still unresolved.
The $3.85 resistance level was seen as a potential bearish reversal candidate. However, AMBCrypto’s analysis suggests that Toncoin might climb to $3.6 before reversing. The token’s MACD remained below zero but formed a strong bullish crossover after recent gains. A breach of the $3.95 target would be necessary for a bullish market structure shift.
Despite this possibility, the chances of a quick TON recovery are slim, and the $4.5 zone is likely to act as a supply zone. The 1-month liquidation heatmap highlights liquidity pockets at $3.66 and $3.9, making these levels prime candidates for a bearish reversal.
Swing traders can wait for such a move and then look for a reversal in lower timeframes, targeting a retracement of the move. A move beyond $3.7 would invalidate this idea, but if Toncoin reaches $3.6, it could sweep the liquidity before falling to $3.2.
Source: https://ambcrypto.com/toncoin-bulls-face-tough-battle-is-3-6-just-a-dead-cat-bounce