Cryptocurrencies are facing another correction, leading to significantly lower valuations for many coins compared to just a few weeks ago.

One cryptocurrency that stands out in this environment is Toncoin, which presents attractive opportunities for long-term investors and opens the door for short-term traders looking to capitalize on the wider market dip.

Daily time frame analysis

TONUSD - 1 Day Time Frame

Like many other cryptocurrencies, Toncoin has not been immune to the market correction. It experienced a short-term decline that effectively cleared out initial sell-side liquidity.

This liquidity removal is crucial for traders considering new buying opportunities, as it allows commercial market participants, who require significant counterparty volume, to enter the market.

Analyzing further, Toncoin's price action on the daily time frame shows a precise respect for the Fair Value Gap, identified as the blue zone, which has been acting as support. Additionally, the bullish market structure has been maintained, evidenced by the break of a higher peak and the formation of a higher low.

When to buy Toncoin?

To trigger buy orders, the price must close above the resistance level, marked by the orange zone, on the daily time frame. If this occurs, the resistance will likely flip to support, reinforcing the bullish outlook.

A protective Stop Loss (SL) order should be positioned just below the internal bottom to manage risk. The first Take Profit (TP) target should be set at the level of the higher top within the bull market structure.

Traders may consider holding a portion of their position after reaching the first TP, but should adjust the Stop Loss accordingly for better money management.