Toncoin (TON), like many other cryptocurrencies, felt the sting of a recent market-wide decline, dipping to its lowest point in three months. However, a glimmer of hope shines for investors as the price attempts to reclaim a key support level, reigniting profit potential.
TON Price Slides, But Support Emerges
Currently trading at $5.53, Toncoin witnessed a 12% drop in the past 24 hours, plummeting from $6.00 to $5.27. This price swing resulted in a significant portion of the altcoin’s supply falling out of profitability.
However, data from the Global In/Out of the Money (GIOM) indicator reveals a silver lining. Roughly 643.86 million TON, valued at over $3.55 billion, sits poised for potential gains. This specific supply was purchased between $5.47 and $6.15, and a price climb could turn these holdings profitable once again.
Investor Sentiment Shifts: Recovery on the Horizon?
Investor activity paints an interesting picture. Toncoin’s Chaikin Money Flow (CMF) data indicates a period of significant outflows, reflecting a decline in buying pressure and a potential drop in investor confidence over the past six months.
However, a recent reversal suggests a change of tides. Inflows are starting to return, hinting at a potential resurgence in investor interest and a positive shift in the market trend for Toncoin.
The current price of $5.53 suggests Toncoin is aiming to reclaim lost ground on the daily chart. The immediate hurdle lies in breaching the resistance level at $6.04. Additionally, the altcoin appears to be solidifying $5.49 as a support level, needing to hold firm to validate the potential uptrend.
A successful test of this support could propel Toncoin’s price upwards, potentially reaching $6.00 and beyond. For the aforementioned supply to see full profitability, the price must hurdle the $6.15 barrier. Flipping the $6.04 resistance into support would be crucial to achieve this.
Also Read: Toncoin Futures Market Shows Signs Of Life Amidst 12% Price Drop
The Road Ahead Consolidation or Bullish Breakout?
If Toncoin fails to hold $5.49 as support, the price could remain stagnant around this level. This scenario would likely lead to a period of consolidation below $6.00, extending the wait for profits and potentially invalidating the optimistic outlook.
The coming days will be crucial for Toncoin. Will it break free from its current slump and reignite investor confidence, or will it face further consolidation? Only time will tell, but the current shift in investor activity offers a hint of potential recovery on the horizon.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
