Why TON looks set for a fresh all-time high? (2024)

  • Toncoin price tested the ascending trendline support on Monday, trades at fresh weekly highs on Thursday.
  • On-chain data suggests growing activity and interest within the TON’s ecosystem.
  • A daily candlestick close below $6.88 would invalidate the bullish thesis.

Toncoin’s (TON) price tested the ascending trendline support on Monday, rebounding by 10% and currently trading at fresh weekly highs around $7.65 as of Thursday. Increasing activity and interest within the TON’s ecosystem indicate a potential setup for Toncoin to surpass its previous all-time high.

Toncoin price shows potential

Toncoin price has established three consecutive higher lows and four nearly equal highs since April 11, forming an ascending triangle pattern on the daily chart when connecting these swing points with a trendline. This technical formation typically indicates a bullish bias.

However, TON broke out of the ascending triangle pattern on June 14, reaching a new all-time high of $8.29 on June 15. This breakout was short-lived and turned out to be a fakeout, trapping long-position traders. Subsequently, TON experienced a sharp decline of approximately 15%, to test the ascending trendline support, which coincided with the 61.8% Fibonacci retracement level at $6.886. This event led to the liquidation of leveraged long positions, followed by the opening of new long positions. Currently, TON is trading around the $7.65 mark at the time of writing.

If Toncoin surpasses the $8.29 level, it could rally by 19%, aiming for a new all-time high of $9.82. This target corresponds to the 141.40% Fibonacci extension level, drawn from the swing low of $4.60 on May 1 to the swing high of $8.29 on June 15.

The Relative Strength Index (RSI) and Awesome Oscillator (AO) indicators are firmly above their respective mean values of 50 and zero, indicating that the bullish momentum is still in control.

Why TON looks set for a fresh all-time high? (1)

TON/USDT daily chart

According to data from the Coinglass Total Liquidations chart, on June 18, long positions totaling $1.34 million were liquidated, significantly higher than the $155,890 in short positions. This data corresponds with the technical analysis previously outlined.

Why TON looks set for a fresh all-time high? (2)

TON Total Liquidations chart

TON's Open Interest data shows a notable increase, rising from $255.28 million on June 20 to $305.16 million on June 27, marking a 19.5% surge. This uptick, coupled with the price appreciation, suggests an influx of new capital and heightened buying activity in the market. This data further corroborates the technical analysis discussed earlier.

Why TON looks set for a fresh all-time high? (3)

TON Open Interest chart

Additionally, crypto intelligence tracker DefiLlama data shows that TON’s Total Value Locked (TVL) has increased from $582.36 million on June 19 to an all-time high of $678.79 million on June 14.

This 17% increase in TVL indicates growing activity and interest within the TON’s ecosystem. It suggests that more users are depositing or utilizing assets within TON-based protocols, adding further credence to the bullish outlook.

Why TON looks set for a fresh all-time high? (4)

TON TVL chart

Despite the bullish thesis signaled by both on-chain data and technical analysis, if TON breaks the upward trendline of the triangle and closes below $6.88, the outlook would shift to bearish. This scenario could lead to a crash of 13% to $6.00, the daily low from May 23.

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Why TON looks set for a fresh all-time high? (2024)

FAQs

How to set targets for all time high stocks? ›

Some rules to keep in mind when trading all time highs include categorizing the breakout's progress through phases, reviewing pattern structures into the breakout, locating hidden resistance levels, finding your profit protection prices, and considering additional exposure.

Should you buy a stock at an all-time high? ›

An investor who only bought at all-time highs from 1950 to 2019 wouldn't have performed much differently from one who bought at all other dates, according to RBC. The average five-year returns when only investing at all-time highs was 10.3 percent, compared to 11.3 percent when investing at all other dates.

Is it good to buy a stock when it's low? ›

The best time to buy a stock is when an investor has done their research and due diligence, and decided that the investment fits their overall strategy. With that in mind, buying a stock when it is down may be a good idea – and better than buying a stock when it is high.

What is the 90% rule in stocks? ›

Understanding the Rule of 90

According to this rule, 90% of novice traders will experience significant losses within their first 90 days of trading, ultimately wiping out 90% of their initial capital.

Where to invest when the market is all-time high? ›

In a rising market, a concentrated portfolio might increase your chances of losing money. When markets are really high, you need to diversify. In diversification, you need to include stocks of different market capitalization. You can invest in large-cap stocks which tend to be stable during such volatility.

Should you invest when the market is all-time high? ›

This upward trend is natural as equities grow. So, worrying about all-time highs isn't necessary. We crunched some numbers too. Over the last 25 years, investing only at all-time highs still yielded an average return of 14% in the following year.

How to invest at all-time highs? ›

Keep a diverse portfolio, invest regularly, and watch those investment fees. Nobody can predict the future, but history shows us that stocks generally trend upward over time. All-time highs aren't necessarily a red flag – in fact, they just might be a sign that there's more growth ahead.

What happens when stock reaches all-time high? ›

57% of the times – the 1Y returns exceeded 12%

This clearly shows that “all-time highs” automatically don't imply a market fall and in fact, the majority of times, market returns have been strong post an all-time high.

What is the 3-5-7 rule in trading? ›

The strategy is very simple: count how many days, hours, or bars a run-up or a sell-off has transpired. Then on the third, fifth, or seventh bar, look for a bounce in the opposite direction. Too easy? Perhaps, but it's uncanny how often it happens.

What is the best time of day to buy stocks? ›

The opening period (9:30 a.m. to 10:30 a.m. Eastern Time) is often one of the best hours of the day for day trading, offering the biggest moves in the shortest amount of time. A lot of professional day traders stop trading around 11:30 a.m. because that is when volatility and volume tend to taper off.

How to tell if a stock is a good buy? ›

Evaluating Stocks
  1. How does the company make money?
  2. Are its products or services in demand, and why?
  3. How has the company performed in the past?
  4. Are talented, experienced managers in charge?
  5. Is the company positioned for growth and profitability?
  6. How much debt does the company have?

How to set price targets for stocks? ›

There are many different ways to calculate a price target, but a common method involves using price-to-earnings ratios. If you divide the current P/E by the forward P/E and then multiply by the current price, you should have a reasonable prediction for the price target a year from now.

What is the 50 rule in the stock market? ›

The fifty percent principle predicts that an observed trend will undergo a price correction of one-half to two-thirds of the change in price. This means that if a stock has been on an upward trend and gained 20%, it will fall back 10% before continuing its rise.

What is a 52 week high strategy? ›

The 52-week high is the highest price a stock has hit within the last year. Rather than interpreting this as a sell signal, the 52-week high approach suggests that we consider it a chance to purchase or add to our position. Here's why. Momentum Matters: Successful trading involves spotting market trends.

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