Toncoin (TON), the cryptocurrency associated with the messaging app Telegram, reached a year-to-date high of $7.54 on June 6 before dropping to $7.03 at the time of writing. The decline in demand for Toncoin has raised concerns that its price may fall below the $7 level. The decrease in buying momentum has resulted in a 7% drop in the price of TON, with a noticeable decline in the number of daily active addresses and new addresses created for trading TON.
The decrease in user demand for Toncoin poses a risk of further price declines as it deters new users from entering the market and discourages existing users from actively trading the cryptocurrency. The Relative Strength Index (RSI) for TON has also been trending downward, indicating an increase in selling pressure. With an RSI value of 58 at press time, the asset is at risk of a further decline in price.
TON has been following an ascending channel pattern since May, where the price has been making higher highs and higher lows. However, the resistance at $8.64 and support at $6.8 suggest that TON may be poised to fall below its current price of $7.03. The Moving Average Convergence Divergence (MACD) indicator also indicates a potential downward trend, with the MACD line gearing to cross below the signal line, signaling a bearish trend.
If the bears regain control of the market, TON’s price could plummet to $6.41 below the support level. However, if the downward trend is invalidated, TON’s value could rise to $7.01 and trend towards resistance. Traders are advised to monitor key indicators such as the RSI and MACD to determine the potential direction of TON’s price movement in the coming days and weeks.
In conclusion, the future of Toncoin remains uncertain as the decline in demand and potential price drops continue to pose risks for investors and traders. It is important to stay informed about key market indicators and trends to make informed decisions when trading TON and other cryptocurrencies in the volatile market.
Discussion about this post