Crypto News Today: SUI Breaks Trend Line Resistance While TON Bounces Off Key Support

Meanwhile, Toncoin (TON) has defied the market’s downturn today and it has booked gains of nearly 7% in the past 24 hours to sit at $2.98 per token.

Trading volumes for TON have also gone down by 8% despite this uptick as the move does not appear to be the result of any positive project-specific news.

Both crypto assets have a similar market capitalization of more than $7 billion each. The performance of SUI in the past week has been similar to that of other utility tokens in the smart contracts space as it delivered positive returns of 5.8% during this period.

Meanwhile, TON lost 4.6% of its value in the last 7 days. TON is the utility token of Telegram’s official blockchain. Its name stands for The Open Network and its price can be influenced by the demand that comes from Telegram users who can use it to pay for in-app purchases.

Is SUI About to Pull Another Bull Trap?

SUI rose above a key trend line resistance for a second time during the weekend. However, the last time this happened, the price went down rapidly and back within the descending triangle shown in the chart.

This jump came after the price found support at around $1.70. This is the most critical area of support to watch for any upcoming declines as it has served as a launching pad for Sui multiple times in the past.

The first time that a bullish breakout occurred, SUI dropped by 32% from its closing peak of March 27. If this turns out to be another bull trap, it could result in a drop to the $1.70 level, meaning a downside risk of around 25%.

Momentum indicators already show a deceleration as the MACD’s histogram has flashed its second consecutive light red bar, meaning that positive momentum has slowed down.

Moreover, the Relative Strength Index (RSI) is standing near the signal line and could retest it during today’s session as the American session has started with strong selling pressure.

TON Could Keep Rising as Supply Imbalance is Filled

Toncoin (TON) went down sharply in April and sold off most of the rally that started after the head of Telegram, Pavel Durov, was allowed to return to his home base after months of being investigated by French authorities.

That mid-March rally left behind a significant supply imbalance that the market typically tries to correct.

Now that this gap has been fully filled, the price has already increased for two days in a row. This supports a bullish short-term outlook for TON as technical factors drove the price action to current levels but now “fundamentals” could play a bigger role in shaping TON’s price over the next few days.

The MACD’s histogram shows that negative momentum has decelerated while the Relative Strength Index (RSI) has been trending higher and is already retesting the signal line from below.

The key support to watch for TON at this point in case of a pullback would be the $2.76 level. Meanwhile, if the rally gains traction, the price could rise above the $4 area and retest that resistance in the next couple of weeks as price discovery resumes.