Toncoin (TON) appears to be at a critical juncture. Recent on-chain analysis suggests that this altcoin may have reached a stage where the chances of a deeper correction are slim. Key indicators point toward strong support levels that could lead to a potential price bounce, especially if buying pressure continues to build.
Understanding On-Chain Metrics2a
A major factor contributing to Toncoin’s resilience is the In/Out of Money Around Price (IOMAP) metric. This on-chain analysis tool classifies addresses based on their current profitability. If the average purchase price of Toncoin is lower than its current trading value, those addresses are considered “in profit.” Conversely, if the current value exceeds the average purchase price, those addresses are “out of money.”
For Toncoin, approximately 2.44 million addresses hold around 600 million tokens purchased between $4.69 and $4.84, currently enjoying unrealized profits. This significant volume of profitable holders surpasses those facing losses between $4.84 and $5.58, suggesting a robust support structure in the $4.69 to $4.84 range. Should buying pressure increase, analysts predict that Toncoin‘s price could rally toward the upper resistance at $5.58.
Money Flow Index Signals Accumulation
Complementing the IOMAP analysis is the Money Flow Index (MFI), which gauges buying and selling pressure in the market. Recently, the MFI for Toncoin has crossed above the crucial midpoint of 50. This crossover indicates a shift toward stronger buying interest, as market participants are beginning to accumulate more Toncoin. A rising MFI not only reflects positive sentiment but also strengthens the case for a potential price increase.
The daily chart for TON/USD shows that bulls have established strong support at $4.67. This support level played a pivotal role in the altcoin’s impressive 24% rally in September, which mitigated losses and propelled Toncoin to a peak of $5.80. The previous success of this price action suggests that a similar pattern could unfold again, especially if market conditions remain favorable.
Future Price Projections
If Toncoin continues on its upward trajectory, projections indicate a potential climb to around $5.78 in the short term. However, traders should remain vigilant of bearish pressures that could undermine this outlook. If bulls fail to defend the critical support level at $4.76, the bullish thesis could be invalidated, and Toncoin might retreat to levels as low as $4.45.
In summary, Toncoin is currently navigating through a significant phase characterized by strong support and bullish signals. The combination of favorable on-chain metrics, including the IOMAP and MFI, paints a promising picture for Toncoin’s future. As the cryptocurrency market continues to evolve, traders and investors will be closely monitoring Toncoin’s performance and market sentiment. With the right momentum, Toncoin could be poised for a notable price surge, making it an asset to watch in the coming days.
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.
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