TON could offer new buying opportunities if it retests this value area
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
Since the end of January, The Open Network’s TON, has consolidated in the $2.2 – $2.6 range. At press time, its price action had retested a key value area that could induce the market to a recovery. However, a pullback retest on this key value area could offer new buying opportunities and extra gains if overall market sentiment improves.
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Source: TON/USDT on TradingView
On the daily chart, the price rejection around the supply zone (red) at $2.6 set TON into a correction. At press time, TON had retested the demand zone (green) and the high-value node (HVN) of the Fixed Range Value Profile (FRVP). 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.
Therefore, bulls could get new buying opportunities at $2.3 if the pullback retests the POC of $2.3. However, the most ideal and secondary buying opportunity would be a retest of the demand zone ($2.16 -$2.23). 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.
A break below the demand zone level of $2.1183 will invalidate the aforementioned bullish thesis. Such a downswing could offer shorting opportunity at $1.9518.
The RSI (Relative Strength Index) seemed to be hovering near the neutral line too. At the same time, the OBV (On Balance Volume) fluctuated, showing a neutral structure that could extend the price consolidation if the trend persists.
Source: Santiment
According to Santiment, TON
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