Toncoin (TON) Is Most Oversold Asset: How Price Will Be Affected

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. Although the move is now reaching levels that have historically proven difficult to sustain, Toncoin recently produced one of the most explosive rallies in the cryptocurrency market. After a protracted consolidation range, TON surged into a nearly vertical breakout, quickly regaining all of the major moving averages and moving toward the $3 zone with hardly any discernible pullback. TON traded in the $1.20 to $1.40 range for months, stuck in a gradual decline. Then, as volume skyrocketed and buyers rushed into the market, momentum abruptly quickened. In a matter of sessions, the asset shot through the 50, 100, and 200 EMAs, drastically altering the market's structure. However, the move appears dangerously overheated at this point. RSI is the most obvious warning sign. Even for cryptocurrencies, TON's Relative Strength Index is currently at an extreme level, close to 93. In actuality, an RSI at this level typically indicates exhaustion as opposed to long-term upside continuation. Because buyers eventually run out and profit-taking pressure rises quickly, markets rarely sustain this level of momentum for very long. That does not imply that the larger TON trend is over. It does indicate that the rally's current pace is getting erratic. In the past, strong volatility events have typically been preceded by RSI readings above 90. Occasionally, those occurrences completely reverse. Occasionally, they become forceful retreats before the trend picks back up....