Key Takeaways
Toshi crypto traders need to be careful of volatility in the short term. A fake breakdown from the triangle pattern, followed by a rally towards $0.007, appeared likely from the liquidation heatmaps.
Toshi [TOSHI] recorded a 5.61% price drop over the past 24 hours, following a 34% rally on the charts. This rally began on Sunday, 03 August, and lasted till Wednesday, 6 August, before seeing a pullback.
The memecoin lacked a strong bullish trend over the past two months on the higher timeframes. In fact, the mascot of the Base blockchain has not made steady bullish strides, reflecting the price action seen across the memecoin sector.
The only exception was Bonk [BONK], which managed to break out past May’s resistance.
Toshi crypto approaches key support zone
Source: TOSHI/USD on TradingView
On the 1-hour chart, the market structure was bullish once again after the move past $0.00065. The rally from June meant that the swing structure was also bullish. A retracement to the 61.8% retracement level at $0.000518 came before the gains of the past week.
The DMI agreed with the bullish structure, underlining an uptrend in progress. The A/D indicator highlighted bullish weakness since June. Its downtrend indicated reduced buying pressure, which did not bode well for a sustained rally.
Source: TOSHI/USD on TradingView
Zooming in on the 1-hour timeframe, we can see that Toshi crypto formed a descending triangle pattern. The $0.0006-$0.00062 area appeared to be a key resistance over the past two weeks, and was being retested as support at the time of writing.
The triangle pattern is likely to be followed by a bullish breakout. However, the MFI underscored bullish weakness once again. The lack of buying pressure must be turned around soon to sustain the uptrend.
Source: Coinglass
The 2-week liquidation heatmap revealed a buildup of liquidity just above $0.006. This agreed with the findings from the 1-day TOSHI price chart.
There may be a chance that this magnetic zone would be swept before a move towards $0.007 commences.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
