Has Toncoin Price Hit Overbought After a 70% Weekly Surge？

Toncoin Price: As the leading cryptocurrency Bitcoin extended its high to new levels, the altcoin witnessed an aggressive recovery momentum, including Toncoin, This asset riding a high momentum is highlighted by three massive candles in the daily chart which propelled the coin value by $2.7 to $4.38, registering a 68% growth.

Also Read: Crypto Prices Today March 13: Bitcoin At $72K, Ethereum At 4000, Pepe Coin & Toncoin Surge

Toncoin Price Bullish Reversal Attracts Smart Money

Toncoin Price| Tradingview

For over a year, TON, the native cryptocurrency of theToncoin decentralized layer-1 blockchain, traded in a sideways trend struggling to sustain above the $2.8 barrier. However, an analysis of the daily time frame chart showed this consolidation as the formation of a bullish reversal pattern called inverted head and shoulder pattern,

On March 1st, the Toncoin price gave a bullish breakout from the patterns neckline resistance at $2.7 signaling a notable change in market dynamic. The post-breakout rally uplifted the coin price by 70% to reach the current trading price of $4.53. This bullish movement coincides with speculation around a potential Initial Public Offering (IPO) by the messaging giant Telegram, which has been closely linked with the TON project.

According to Spot On Chain, a notable cryptocurrency whale — identified by the Ethereum address 0x1ee — has invested heavily in Toncoin. The whales transaction history shows a purchase of 209,237 TON, valued at around $852K worth of Ethereum (ETH), at an average price of approximately $4.07 per TON over the past day.

The $TON price surged ~26% (24H) amid a potential IPO of #Telegram.

Whale 0x1ee has spent 214 $ETH ($852K) to buy 209,237 $TON at ~$4.07 in the past 25 hours.

Note that the whale is currently earning an est. total profit of $2.48M from 6 of 9 traded tokens (win rate: 66.6%).…

— Spot On Chain (@spotonchain) March 13, 2024

This accumulation hints that smart money traders do not expect an immediate top for the TON price and possibly a prolonged recovery.

As per the traditional pivot level, the recent price jump gives a deceive breakout from Resistance-4 level at $4.4, providing buyers another stepping stone to climb higher. With sustained momentum, the TON price may rise another 7.5% to meet the next immediate resistance at $7.85.

Also Read: Bitcoin Whales With Over 1000 BTC Cash Out Profits, A Correction Ahead？

Technical Indicator

• Relative Strength Index: The daily RSI slope to 90% indicates the buyers leading an overextended rally, and a minor pullback could allow them to recuperate strength.

• Pivot Levels: If the TON price enters a new correction from $4.4, the pivot levels of $3.9 and $3.4 stand as potential supports.