Toncoin (TON) has been trending downwards across multiple timeframes, raising concerns about a prolonged bearish spell. Recent reports suggest this bearish momentum is strengthening, but a glimmer of hope emerges from the Futures market data.
Market-Wide Downturn Drags TON Lower
Bitcoin’s (BTC) recent struggles, fueled by dashed hopes of a bullish September, have cast a shadow over the entire cryptocurrency market. This market-wide sentiment has pushed TON below the trading range it established in early June.
Since early June, TON has traded within a well-defined range of $6.74 to $8.27. However, over the past week, the coin dipped below this established support zone, effectively transforming it into a resistance level. This development is further emphasized by the declining On-Balance Volume (OBV), indicating a continuation of the downtrend observed throughout the past month.
Technical Indicators Point Towards Further Decline
The daily Relative Strength Index (RSI) adds to the bearish narrative. Currently displaying a bearish pattern, the RSI suggests a potential drop towards key Fibonacci retracement levels at $6.21, $5.86, and even $5.36. With the support zone breached, a decline below $6 in August appears increasingly likely.
Hope from the Futures Market?
While most factors paint a bleak picture for TON, there’s a potential counterpoint. Open Interest, essentially the total outstanding derivative contracts, has dipped from $257 million to $246 million in the past two days. This coincided with a rejection at the $6.84 short-term resistance level, which has held firm since July 26th.
Interestingly, the spot Cryptocurrencies Volume Delta (CVD) is experiencing a surprising surge. This metric, which often contrasts with the OBV, indicates increased buying pressure over the past few days. While this might not be enough to trigger a complete price recovery, it could lead to a short-term rally towards the $6.8 region again.
Despite the glimmer of hope from the Futures market, overall sentiment leans towards a bearish future for TON. Continued technical analysis and market developments will be crucial in determining the coin’s next move. Investors should exercise caution and closely monitor market conditions before making any investment decisions.
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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