15.12.2022
Today’s trading spotlight deals with the cryptocurrency Toncoin, which is another layer-1-blockchain. For everyone not wanting to read all this, there will be a one sentence TLDR on the bottom, even though I still would appreciate it if you read the whole analysis.
So far Toncoin is not listed on the biggest exchanges like Binance and Coinbase, which provides a good opportunity. A lot of people do not have the chance to buy/trade this cryptocurrency right now. If you are able to buy it right now and the rumors of a listing by Binance and Coinbase pick up, the price might rise until its actual listing (where cryptos tend to dump afterwards). As it is one of the larger cryptos (21 on Coingecko & 22 on Coinmarketcap; sorted by Mktcap.), but still not listed on main exchanges, these CEXs might consider a listing to get the trading volume to their platform.
And exactly here is the opportunity for people who can buy it on exchanges like KuCoin. You could buy the coin, look for a pump until the actual listing and then start selling.I still think you need a more precise trade plan for that.
In the following images and paragraphs you will see some TA on the coins price history and a plan with entry, exit and risk levels.
On the daily chart below you can see the price history of TON, with it having an important level in the ~$2 area. It had resistance there twice and then made a good push through. This is a good price level to keep in mind.
In the hourly chart from the last few days you can see the cryptocurrency Toncoin advancing quite well. It broke resistance on the daily chart around $2 and almost went to $3.
It recently bounced off the $2.25 - $2.30 level, which is one of the price levels I would use as a risk level. The other is the lower trendline around $2, which was resistance before. This plan is definitely for going Long Toncoin. Entry could be in the $2.30s if the price action gets more bullish again in the short term OR around the $2 level. A drawback to the $2 area and a push higher from there is for sure the more healthy price action.
For exit levels it is a bit harder to tell a specific level, but more dependent on bigger CEX’s listing the cryptocurrency. So look for FOMO on Twitter for example if rumors or news pick up and exit right before a listing date. Buy the rumor, sell the news type of trade.
TLDR
Buy in anticipation of Binance/Coinbase listing and sell when the coin actually gets listed.
I hope this helps you to get an idea for a possible trade on this one.
Have a great day!
Niklas
This is not financial advice, it is for educational purposes only!
If you have 2 minutes, I would appreciate it if you could give me feedback that I can use to improve my writing. For the feedback you can take part in the feedback survey: https://forms.gle/EfkFpn31K65QeQhh7
