Toncoin (TON) has been grappling with a bearish trend, exacerbated by the arrest and subsequent release of Telegram CEO Pavel Durov. However, recent signs indicate a potential shift in investor sentiment, signaling a possible recovery for the cryptocurrency.
Following Durov’s arrest, Toncoin experienced a sharp spike in active deposits, leading to widespread panic selling. The cryptocurrency saw its value plummet, with investors fearing the worst. However, as the dust begins to settle, a noticeable decline in active deposits suggests that the panic may be subsiding, and confidence among investors is slowly returning.
Investors Regain Confidence Amid Easing Selling Pressure
The recent data showing a decrease in active deposits is a positive sign for Toncoin, indicating that the selling pressure is starting to ease. This shift could mark the beginning of a recovery phase for the cryptocurrency. The initial surge in active deposits, driven by panic selling, now appears to be reversing, as investors seem to be regaining their composure.
The overall macro momentum for Toncoin is also showing signs of improvement. The Moving Average Convergence Divergence (MACD) indicator, a key tool for analyzing market trends, hints at a potential reversal. The red bars on the MACD histogram, which typically signal bearish momentum, have been receding, suggesting that the downward pressure on Toncoin may be weakening.
As the MACD approaches a bullish crossover, where the MACD line crosses above the signal line, it reinforces the idea that the worst of the selling pressure could be over. Should the MACD histogram transition to green bars, it would confirm a reversal of the bearish trend, potentially signaling the start of a new upward trajectory for Toncoin.
TON Price Prediction – A Breakout on the Horizon?
As of now, Toncoin is trading at $5.36, still reeling from a significant 23% crash toward the end of August. Despite this setback, the cryptocurrency is showing signs of resilience as it attempts to overcome recent losses. The key resistance level at $5.49 is now in focus, and breaking through this barrier could pave the way for a recovery.
If Toncoin manages to turn this resistance into support, it could trigger a rally, potentially pushing the price toward the $6.04 mark — a critical psychological level for investors. The broader market conditions are also shifting in favor of Toncoin, with the decline in selling pressure increasing the likelihood of a breakout.
However, it’s important to remain cautious. Toncoin has previously tested the range between $5.49 and $4.85, forming a consolidation zone. If the price remains stuck within this range, it could invalidate the bullish outlook, delaying any significant recovery.
Toncoin is at a critical juncture. With investor sentiment appearing to shift and technical indicators suggesting a possible reversal, the cryptocurrency could be on the brink of a recovery. However, breaking through the $5.49 resistance level is crucial for this bullish outlook to materialize. If successful, Toncoin could see a sustained upward trajectory, offering a glimmer of hope for investors after a tumultuous period.
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.