A cryptocurrency analyst has explained how Toncoin could be awaiting a 50% price move, based on a technical analysis (TA) pattern.
Toncoin Is Coiling Inside A Symmetrical Triangle
In a new post on X, analyst Ali Martinez has shared a TA pattern forming in the daily price chart of Toncoin. The formation in question is a triangle, which forms when an asset’s price consolidates between two converging trendlines.
Triangles can be classified into a few different types based on the slope of their trendlines. Triangles that have their upper line flat and lower line angled upward are known as ascending triangles. Similarly, a flat lower line creates a descending triangle. Beyond the two, there is also a third type. When the trendlines are approaching each other at a roughly equal and opposite angle, the pattern is called a symmetrical triangle. The triangle forming in TON’s price is closest to this type.
In a symmetrical triangle, the asset’s consolidation gets narrower in a sideways manner as it travels across the channel, until it shrinks down to a point at the apex. Like other consolidation channels in TA, the upper line of the pattern is likely to be a source of resistance, while the lower one is that of support. A breakout of either of these lines can imply a continuation of the trend in that direction.
In ascending and descending triangles, breakouts are more likely to occur toward the upside and downside, respectively. For symmetrical triangles, however, there is no bias toward any particular direction, with an escape being about equally probable both ways.
Now, here is the chart shared by Martinez that shows the triangle that the daily price of Toncoin has been stuck inside for the last few months:
As displayed in the above graph, Toncoin has been trading inside what appears to be a symmetrical triangle. The asset is already a decent part of the way into the channel, with it set to reach the end of it in just a couple more months.
Generally, breakouts become more likely to occur the closer the price gets to the apex of the triangle. As TON’s consolidation is becoming quite narrow now, it’s possible that a move beyond one of the trendlines could occur in the near future.
According to the analyst, a breakout from this pattern may result in a 50% move for Toncoin. Since this is a symmetrical triangle, this breakout could, in theory, be equally probable to occur in either direction.
For now, however, TON seems to be closing toward a retest of the lower boundary. If a retest occurs, it will be interesting to see whether support holds or if a bearish breakdown would occur.
TON Price
Toncoin sunk below $3.04 a few days back, but the asset has since made some recovery to $3.11.
