Trader Toncoin (TON) should curb FOMO because the breakout may fail.

Toncoin (TON) has increased by 11% in the past 24 hours after former VISA executive Nikola Plecas was appointed as Vice President of the TON Foundation. This increase has brought the price close to the resistance zone of $3.35–$3.50 for the third time in five weeks.

The continuous retesting of the resistance zone indicates the possibility of forming a range. If this is the case, TON traders and short-term holders should consider selling tokens to take profit.

TON forms a zone that could be bad news for the bulls

TON price chart | Source: TradingViewThis token has been trading in the (purple zone) for nearly a month. This zone ranges from $2.95 to $3.5, with the midpoint of the zone at $3.23. The latest bullish move went from the bottom to the top of the range in just 36 hours.

At the local peak of 3.7 dollars, TON recorded an impressive increase of 26.5% in less than two days. This is particularly noteworthy in the context of Bitcoin struggling to regain the 110,000 dollar mark while the altcoin market is moving sideways.

However, this rally also carries warning signals. The upward momentum was abruptly halted just above the resistance zone. As of the time of writing, the price has not even surpassed the resistance threshold of 3.48 dollars.

The OBV indicator has increased as recent trading sessions recorded high trading volume. Meanwhile, the Awesome Oscillator also indicates the possibility of a bullish crossover.

Source: CoinglassHowever, the liquidation map also shows a threat to the bulls. FOMO can become the enemy of Toncoin traders at this time. Since May 10, a liquidity cluster has accumulated around the zone of 3.6–3.66 dollars.

Another "price attraction" zone has also appeared at the local peak of 3.2 dollars, formed in the past week. Both of these liquidity clusters have been swept through in the recent price surge. Typically, such rapid movements aim to hunt for liquidation levels and tend to reverse after achieving that target.

If TON does not soon turn the 3.5 dollar zone into support, traders should prepare for a trend reversal scenario.

Minh Anh