An analyst has pointed out how Toncoin (TON) is currently trading inside a Triangle pattern that could potentially set the stage up for a 40% move.
Toncoin Has Been Stuck Inside A Triangle On The Daily Timeframe
In a new post on X, analyst Ali Martinez has talked about a pattern that Toncoin has recently been moving inside. The pattern in question is a Triangle from technical analysis (TA), which forms when an asset’s price observes consolidation between two converging trendlines.
The upper line of the pattern is likely to be a source of resistance in the future, 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.
There are a few different types of Triangles in TA. Three popular ones include the Ascending, Descending, and Symmetrical variations. The orientation of the trendlines relative to each other defines which type a particular triangular channel falls under.
In an Ascending Triangle, the upper trendline is parallel to the time-axis. This means that as the price travels inside the pattern, its consolidation shrinks toward a net upside. The Descending Triangle involves just the opposite case; the upper line is sloped downward while the lower one is flat.
The third variation, the Symmetrical Triangle, has its trendlines at a roughly equal and opposite slope. In this pattern, the price’s range tightens to a point in a sideways manner.
Now, here is the chart shared by the analyst that shows the Triangle pattern that Toncoin has seemingly been trapped within during the past few months:
From the graph, it’s visible that the Triangle that the 1-day price of Toncoin has been following looks similar to a Symmetrical Triangle, but it’s not a perfect one; there is a slight bias to the downside.
The cryptocurrency most recently found support at the lower line and has since climbed toward the midway point between the trendlines. The coin’s price is now not too far from the apex of the pattern.
Generally, breakouts become more likely as consolidation becomes tighter, so it’s possible that TON may be approaching one. According to the analyst, a breakout, if it happens, could potentially end up leading to a 40% move for Toncoin.
As for which direction a breakout might take the asset in, Symmetrical Triangles usually have both sides at equal probability. Since the Triangle in the current case is slightly angled down, however, an exit below the lower line may be a bit more likely.
It now remains to be seen how Toncoin’s price will develop in the coming days and if the pattern will play any role.
TON Price
At the time of writing, Toncoin is trading around $3.3, up over 2% in the last seven days.
