The post Toncoin’s battle for $4: Why $3.93 is a key level to watch appeared on BitcoinEthereumNews.com.

Toncoin retraced to $2.45, a key demand zone last tapped in March 2024, before staging an aggressive recovery. $4 level has proven to be a pivotal resistance, triggering multiple rejections. Toncoin’s [TON] 19.54% monthly rally has positioned it as the top-performing high-cap asset. However, its brief deviation above the $4 level faced swift rejection, indicating potential local exhaustion. On the flip side, market structure suggests a sentiment shift, with investors transitioning from anxiety to denial. In market psychology, denial is a phase where participants dismiss early signs of trend exhaustion, anticipating continuation instead. With this in mind, can Toncoin prevent a mass capitulation and trigger a supply squeeze, or is the current rally setting up for distribution? TON’s current market standing — Battling $4 resistance  On its 1D price chart, Toncoin retraced to $2.45, a key liquidity zone last tested in March 2024. The subsequent recovery was impulsive, yet the $4 reclaim has proven to be a strong resistance. The latest breakout attempt saw TON briefly pierce above $4, only to face swift sell-side absorption, indicative of a liquidity grab. This rejection, despite the absence of clear overextension signals, reinforces local distribution dynamics. Consequently, shorts capitalized, triggering forced liquidations of $340 million in open positions. The resulting deleveraging event contributed to the pullback, bringing TON back to $3.80 at the time of writing. Source: TradingView (TON/USDT) Now, TON is staging another push toward $4. However, the $3.93 supply zone remains a key inflection point, where 5.18 million addresses collectively hold 795.50 million Toncoin.  A rejection at this level could catalyze cascading sell pressure, putting 3.12 billion TON at risk of distribution. Source: IntoTheBlock In fact, failure to sustain bullish momentum may induce another short squeeze, extending consolidation within a liquidity trap. Yet, there’s a silver lining. The market sentiment is…

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Filed under: News - @ March 30, 2025 10:02 pm