Toncoin (TON), the cryptocurrency native to Telegram’s blockchain, experienced a modest 2% increase in price within the past 24 hours. However, despite this minor boost, TON faces significant selling pressure, threatening its ability to break past the critical $5 mark.
As of now, Toncoin trades at $4.72, with a notable attempt to retest the $5 threshold. Yet, on-chain data reveals that certain market participants might be preventing the coin from achieving a meaningful recovery.
Profit-Taking Intensifies
According to data from Santiment, an analytics firm tracking blockchain activity, the ratio of daily on-chain transaction volume in profit compared to loss has hit its highest level since February. This metric indicates the number of Toncoins moving either at a profit or loss, and when it spikes, it often signals heightened profit-taking.
When a large portion of the market starts to take profits, it increases the risk of a sell-off. On the other hand, a drop in this ratio might signal that investors are holding onto their coins (HODLing) rather than selling them off. In Toncoin’s case, the recent spike in profit-taking could be a red flag for the ongoing price trend, especially after the token showed early signs of recovery.
Bulls vs. Bears – Who’s Winning?
A deeper look into Toncoin’s market activity shows a growing concern for the cryptocurrency’s price momentum. The Bulls and Bears indicator, which tracks whether major addresses (trading around 1% of the total volume) are buying or selling, paints a more bearish picture.
Typically, when the number of bulls — addresses buying more than 1% of the daily volume — exceeds the number of bears, the market signals a potential rally. Unfortunately for Toncoin, the last 24 hours have seen a reversal, with bears outnumbering bulls. This could indicate that TON’s upward trend might be running out of steam.
Will Toncoin Reclaim $5?
While Toncoin recently rebounded from $4.61 and now sits at $4.72, technical analysis suggests that its attempt to cross the $5 mark may face hurdles. The Stochastic Relative Strength Index (Stoch RSI), a key momentum indicator, shows that Toncoin is nearing overbought conditions.
The Stoch RSI compares recent gains and losses to determine if an asset is overbought or oversold. Currently, Toncoin’s Stoch RSI remains below the neutral line, hinting that momentum may still be on the bearish side. If this persists, TON could face a dip, potentially falling to $4.69 support or even as low as $4.47.
Also Read: Toncoin Surges 4.2%, 86% Of Holders Still In Loss—108% Price Rally Possible
However, there’s still a chance for Toncoin to avoid this downward spiral. If the recent spike in realized profits begins to taper off, the selling pressure may ease, allowing TON to climb past $5 and possibly target $5.25.
In the near term, Toncoin’s ability to break above the $5 level will likely depend on whether bulls can regain control and the extent to which profit-takers step back. For now, the market remains in a delicate balance, with both bullish and bearish forces at play. Traders and investors should keep an eye on key support and resistance levels, as well as the Stoch RSI, to gauge where Toncoin might be headed next.
Conclusion: While Toncoin’s recent uptick is a positive sign, its path to sustained recovery remains fraught with challenges. Profit-taking and bearish pressure could continue to hinder its progress, making the battle between bulls and bears crucial in determining its next move.
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