As Toncoin (TON) continues its struggle in the crypto market, the altcoin’s recent performance has raised concerns among investors. Ranking lowest in the top 10 cryptocurrencies, Toncoin’s market capitalization currently stands at $13.14 billion. However, the price action over the past few weeks paints a bearish picture, with a significant 10.23% drop in the last week and a staggering 16.26% decline the week before.
Price Performance And Recent Developments
Toncoin’s price has been heavily influenced by recent news involving Telegram founder Pavel Durov. Following Durov’s release on a $5.56 million bail, Toncoin has consolidated just above the crucial $5 psychological support level. After a dramatic three-day plunge of 24% that pushed the price to $5, the altcoin has exhibited a sideways trend, accompanied by increased volatility. Despite a 4.43% drop on Sunday, the $5 support continues to hold, delaying a potential further decline.
On the 4-hour chart, the ongoing bearish trend is marked by a negative cycle within a declining triangle pattern. This technical setup suggests a possible continuation of the downtrend, with a breakdown rally potentially extending the bearish phase.
Technical Indicators Signal Mixed Signals
Technical analysis reveals a mixed outlook for Toncoin. The bullish divergence observed in the Relative Strength Index (RSI) hints at a possible rebound, provided there’s enough momentum to break the overhead trend line. However, the prevailing bearish sentiment is also reflected in the moving averages. The death cross formation in the 50 and 200 EMA on the 4-hour chart, along with the potential for a similar cross on the daily chart, signals a looming bearish trend reversal.
Also Read: Toncoin (TON) Eyes 12.7% Rally As Investor Confidence Rebounds Amid Easing Selling Pressure
Fibonacci Levels and Support Levels
The Fibonacci retracement levels indicate potential resistance at $5.80 and $6.59, corresponding to the 23.60% and 50% retracement levels, respectively. A breakout rally could encounter resistance near the 50 EMA at $5.55. On the downside, should the price fall below the $5 mark, support levels are identified at $4.31 and $3.49.
As Toncoin navigates through this turbulent phase, the key question remains: will the $5 support hold firm amidst the growing bearish sentiment? With technical indicators showing potential for both a rebound and a further decline, Toncoin’s future price movements will largely depend on upcoming developments and market sentiment. Investors should stay vigilant and closely monitor the altcoin’s performance, especially in light of ongoing news surrounding Pavel Durov’s case and its impact on Toncoin.
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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