A cryptocurrency analyst has explained how Toncoin could be awaiting a 50% price move, based on a technical analysis (TA) pattern.
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.
Toncoin sunk below $3.04 a few days back, but the asset has since made some recovery to $3.11.
