Toncoin jumped 16.72% in the latest trading session, pushing its relative strength index to a scorching 88.88 — a level that typically warns traders a pullback is near. The cryptocurrency now sits in heavily overbought territory, and chart analysts expect one final leg up toward the $2.30 resistance mark before a sharp reversal sets in.
Overbought RSI and the $2.30 Test
The RSI reading of 88.88 is well above the standard 70 threshold that signals overbought conditions. While momentum can sometimes carry prices higher for a short while, readings this extreme have historically preceded a snapback. Traders are watching whether Toncoin can muster enough buying pressure to tag the $2.30 level — a zone that has acted as resistance in recent weeks.
If the price does make that push, it would likely be the climax of the current rally. After that, the script flips: a 30% decline is on the table, targeting $1.60 as the next major support level.
What a 30% Drop Would Look Like
A correction from $2.30 to $1.60 would erase most of the gains from this surge. That $1.60 area has served as a floor in past trading sessions, so it could attract buyers looking for a bargain. But the speed of the drop matters — if it happens in a matter of days, panic selling could push prices even lower temporarily.
Investors who bought near the top of this rally face the biggest risk. The move also highlights how volatile crypto markets remain, even for relatively established tokens like Toncoin.
What to Watch Next
The immediate question is whether Toncoin can break above $2.30 or stalls before reaching it. A failure to hit that level would mean the correction starts sooner — and the drop could be just as sharp. Traders will be watching trading volume and order book depth for clues. If volume dries up near resistance, the retreat to $1.60 could happen in short order.
