Will It Retest Key Support?

• Toncoin pulled back from a bullish recovery, targeting Fibonacci support.
• Investors remain bullish despite TON’s recent decline.
• TON traders recently withdrew $19 million worth of the crypto from CEXs.

Toncoin (TON), the native cryptocurrency of The Open Network, has retreated from its recent attempt at a bullish recovery. The nature of this pullback suggests TON may retest a key support level before potentially resuming its anticipated upward trajectory.

TradingView’s data shows TON has fallen 18% from its recent swing high of $6.13 over the past three weeks, dropping to $5.00. This pullback continues the bearish pressure that began after TON reached an all-time high of $8.28 in June, resulting in a 46% loss in value over four months.

Notably, TON’s current decline puts it on track to retest the 0.5 Fibonacci support level on the weekly chart. This marks the fourth time that the altcoin has approached this support level since the end of April.

Toncoin’s Repeated Encounters with the 0.5 Fibonacci Support

TON first tested this support zone on April 29th following a strong rally in Q1 that saw it reach $7.67. The pullback found support at $4.60, establishing a significant support level for the altcoin. The crypto asset bounced after the pullback, pushing higher to establish an all-time high at $8.28. However, a price retracement has seen TON retest the $4.60 support region twice.

This price area coincides with the 0.5 Fibonacci retracement of Toncoin’s weekly chart on TradingView.

Bullish Sentiment Grows as Investors Withdraw TON from Exchanges

Meanwhile, investors’ behavior within the TON ecosystem has fueled bullish sentiments about the cryptocurrency. Coinglass data show that traders have recently withdrawn over $19 million worth of TON from centralized crypto exchanges. This suggests growing confidence in the cryptocurrency and a long-term holding strategy. Analysts believe that if this negative exchange netflow continues, it will further strengthen the bullish outlook for TON, and a resumption of its upward movement could be imminent.

TON traded for $5.11 at the time of writing, slightly above the established support at $4.6. A bounce off this support could propel TON’s price higher and reignite its bullish momentum. However, a break below this support could trigger increased selling pressure and push TON down to the next Fibonacci support at $3.80.