When the price of a publicly traded asset targets long-term market liquidity, it often signals a significant move for investors and traders. Historical analysis shows that the most impactful movements tend to occur right after liquidity is withdrawn.

Today, we focus on Toncoin, a cryptocurrency that has only begun to tap into its liquidity since May of this year.

Daily time frame analysis

TONUSD - 1 Day Time Frame

The entire trading setup has unfolded within the daily time frame. As mentioned earlier, the initial sell-side liquidity spike was the primary parameter analyzed. This was followed by a bullish move that closed both key resistance zones.

With these closures, two new support zones were established, creating an entry point for retail traders considering a buy position.

When to buy Toncoin?

Entering positions at the current levels is possible, and in the event of a short-term decline, you can strengthen your position with a smaller volume than your initial investment.

However, if the final support zone (highlighted in blue) is breached, it is advisable to partially close your position. The final stop-loss order should be placed below the external low of the bearish structure. Profit-taking should be done gradually, as three main buy-side liquidity levels lie ahead.

While Toncoin has been in a strong bullish trend since the beginning of the year, caution is still warranted. Traders must adhere strictly to pre-established trading rules to navigate the market effectively.