The Toncoin price recovered in a V-shaped pattern from £1.32 support as market sentiment shifted away from the US Fed’s November 2nd interest rate hike. The altcoin is currently trading at £1.54 and has gained 16% since last week. With persistent purchasing, the price should attempt a breakthrough from a cup and handle pattern’s £1.76 neckline resistance.
Toncoin’s price behavior has been responding to a cup-and-handle pattern for the last six months. This bullish pattern is frequently observed at market bottoms and provides an early entry opportunity during trend reversal.
The altcoin is currently forming the handle portion of the pattern, steadily approaching the £1.76 neckline. With increased volume activity, the bullish reversal from the £1.32 support signals a serious price recovery.
Furthermore, the surging price has broken through a minor resistance level of £1.49. If the daily candle closes above this resistance, buyers will obtain a stronger foothold to refuel the bullish momentum for more gains.
This development will allow buyers to raise prices by 12-14% to break the £1.76 barrier. A bullish breakout from this resistance will set off the pattern, extending the current Bull Run.
Despite the recent fall, the daily-RSI slope remains above the midline, showing a bullish sentiment. Furthermore, a possible crossover of the RSI slope above the 20 SMA will support the price rally to the £1.76 level.
Toncoin’s bullish trendline is accentuated by a bullish alignment of the critical EMAs (20, 50, 100, and 200). Furthermore, the 20-day EMA provides dynamic support to rising prices.