Toncoin (TON) has been making headlines as its price recently broke below a critical ascending trendline. This move has sparked concerns among investors and analysts, suggesting a significant TON price crash may be on the horizon. This article delves into the recent developments, technical indicators, and on-chain data to provide a comprehensive overview of the situation.
TON Price Crash: Plunges After Breaching Ascending Trendline”
On Tuesday, Toncoin (TON) broke below an ascending trendline, raising red flags for investors. The trendline, drawn by connecting multiple swing low levels from mid-March to late July, had been a crucial support level. However, as of Thursday, TON is trading 3.84% lower at $6.59, down from the daily support level of $6.99.
According to reports, failing to close above the trendline on Wednesday signalled a bearish move. If the trendline holds as a pullback resistance around $6.99, TON could potentially crash by 14% to retest the 61.8% Fibonacci retracement level of the rise between the May 1 low of $4.60 and the June 15 high of $8.28 at $6.00. This scenario underscores the likelihood of a TON price crash.
The Relative Strength Index (RSI) and Awesome Oscillator (AO) indicators on the daily chart support this bearish thesis. Both indicators are currently below their respective neutral levels of 50 and zero, indicating strong bearish dominance.
On-Chain Data Indicates Increased Selling Pressure
On-chain data further points to a bearish outlook for Toncoin price. According to IntoTheBlock’s In/Out of the Money Map (IOMAP), approximately 1,790 addresses bought 1.47 million TON tokens at an average price of $6.93. If the price rises to this level, a significant number of investors may choose to sell to break even on their positions. Such selling activity could exacerbate the TON price crash.
From a technical analysis perspective, the $6.93 resistance level aligns with the IOMAP findings, marking this zone as a crucial reversal point to monitor.
Furthermore, Santiment’s Exchange Flow balance for TON reveals the net movement of tokens into and out of exchange wallets. A positive value indicates more TON entered than exited, suggesting increased selling pressure from investors. Conversely, a negative value indicates more TON left the exchange than entered, indicating decreased selling pressure.
In TON’s case, the Exchange Flow balance has increased from -72,347 to 327,810 from July 21 to July 22, coinciding with a 3.3% price decline. This positive uptick in the Exchange Flow balance indicates increased selling activity among investors, adding to the TON price crash concerns.
Additionally, during this period, the TON Supply on Exchanges increased by 6% in one day. Generally, this suggests that investors are sending TON tokens to exchanges, thereby increasing selling activity. According to reports, this increase in supply on exchanges is a clear sign of heightened selling pressure.
However, it’s worth noting that if TON’s daily candlestick closes above $7 and establishes a higher high on the daily timeframe, it could signal a shift in market dynamics favouring bullish sentiment. Such a change could nullify the bearish outlook, potentially leading to an 11% rally in Toncoin price to the daily high of $7.63 on July 16.
Market Reactions and Investor Sentiment Following the TON Price Crash
The recent TON price crash and technical signals have triggered varied reactions from the market. According to reports, many investors are expressing concern over the potential for further declines in Toncoin (TON) price. The increased selling activity, as evidenced by the rising Exchange Flow balance, highlights the nervous sentiment among TON holders. Officials say that if the bearish trend continues, more investors might choose to liquidate their positions to avoid further losses. However, some optimistic traders believe that the current dip might present a buying opportunity if the price can stabilize and reclaim crucial support levels.
Toncoin (TON) Price Crash-Conclusion
In summary, Toncoin’s recent price movements have raised concerns among investors and analysts. The break below the ascending trendline and the daily support level of $6.99 has triggered a bearish outlook, with potential further declines in the coming days. On-chain data supports this bearish view, indicating increased selling pressure from investors, further suggesting a TON price crash.
However, it’s crucial to keep an eye on the $7 resistance level. A close above this level could signal a shift in market sentiment and potentially rally the Toncoin price. The TON price crash seems imminent for now, and investors should exercise caution and closely monitor the market for any signs of reversal. For real-time updates and expert analysis, tune into TurkishNY Radio.
