Toncoin (TON) has faced bearish pressure over the past week, with its price charts displaying a consistent downward trend. This recent decline has been particularly notable, as it pushed TON's price below a significant resistance level that could have otherwise triggered a bullish rally.
According to data from CoinMarketCap, the market has been largely controlled by Toncoin bears, resulting in a nearly 3% decrease in the token's price over the last 24 hours. At the time of reporting, TON was being traded at $6.31, accompanied by a market capitalization exceeding $21.9 billion. Despite signs of bullish momentum, the token's price has been consolidating within a bullish falling wedge pattern.
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World of Charts, a well-known crypto analyst, highlighted this pattern in a recent tweet, noting that TON's price was approaching the upper boundary of the wedge.
The tweet suggested that a breakout from this pattern could potentially initiate a bullish rally, projecting a 25% surge in TON's price. However, the current price trajectory indicates that TON may struggle to surpass this resistance level.
TON Facing Bearish Trends
According to AMBCrypto, Santiment's data uncovered several bearish indicators for TON. One notable trend was the increase in TON's Exchange Inflow over the past week, suggesting heightened selling pressure as investors looked to offload their holdings. Additionally, TON's Supply on Exchanges witnessed a decline, accompanied by a decrease in its Velocity.
Source: Santiment
This decline in velocity indicated a reduction in TON's usage in transactions within a specified timeframe, further reinforcing the notion of investors divesting from TON. Another concerning metric was the MVRV ratio, which experienced a downward trend in recent days, signaling diminishing returns for investors holding TON.
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Source: AMBCrypto on TradingView
Upon examining TON's daily chart, AMBCrypto identified several bearish signals. Notably, both the Money Flow Index (MFI) and the Relative Strength Index (RSI) experienced pronounced declines, suggesting a continuation of the bearish price trajectory.
Source: Hyblock Capital
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Should this scenario materialize, investors might witness TON retracing to $5.9 in the near term, as this level presents robust support. A breach below this support level could potentially drive the token's value lower, targeting the $5.3–$5 range. However, in the event of a trend reversal and a breakout above the falling wedge pattern, TON could embark on a bullish trajectory towards new highs.
See more: Cryptocurrency Prices and Market Cap
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